Crisis deferred temporarily.
Rheinmetall, a leading German defence company, has formed a new joint venture with Italy's Leonardo, named Leonardo Rheinmetall Military Vehicles (LRMV). This strategic alliance, which was initially intended to be a collaboration with KNDS, Rheinmetall's competitor, has been made official. The Börsenmedien AG, a German media company, has a cooperation agreement with Rheinmetall, receiving remuneration from the issuer.
The new company, LRMV, will be jointly owned by Rheinmetall and Leonardo, each holding 50% stake. The partnership aims to equip the armed forces of various countries with tanks and armored vehicles, potentially securing deals with customers in Europe, the USA, the Middle East, and Australia.
The outlook for Rheinmetall remains positive, with an upside of over 28 percent. Analysts project a near-term upside with a 1-year target price around €2,044 to €2,079, representing approximately 20-26% potential gains from current levels as of mid-2025. This optimistic outlook is supported by Rheinmetall's strong backlog of orders and new contracts, including expansion into digital defense and environmentally friendly platforms.
Despite some recent short-term share price volatility and minor declines in July and August 2025, technical analysis signals a continued rising trend with potential upside of about 18% over the next three months. The sector's sensitivity to global geopolitical developments and government budgets introduces volatility, but Rheinmetall remains well positioned as a core European defence stock with likely exposure to international tank orders and strategic collaboration benefits.
The partnership with Leonardo could potentially help the Rheinmetall share to surpass the 500 euro mark on the stock exchange again. MWB Research has raised its in-house price target for Rheinmetall from 645 to 650 euros, while the average price target of experts is around 616 euros. The Rheinmetall share is included in the Stable Values Index from BÖRSE ONLINE.
It's worth noting that the Börsenmedien AG has developed an index and holds the rights to it. Rheinmetall has been granted a license to use the index. Approval of the cooperation by the authorities is expected by early 2025. LRMV has already secured a significant order from the Italian army worth 23 billion euros.
Investors should be mindful of short-term volatility risks and monitor contract developments closely. The share price is expected to trend upward over the medium term, provided contract wins and geopolitical defense spending continue as anticipated. The partnership with Leonardo, along with strong fundamentals, underpins a positive long-term stock outlook for Rheinmetall.
The partnership between Rheinmetall and Leonardo, aiming to produce tanks and armored vehicles, is expected to bolster their business operations globally, potentially diversifying their customer base from Europe to the USA, Middle East, and Australia. This strategic alliance in the finance sector of the defense industry could lead to future investments and deals, potentially driving the Rheinmetall share price upward and surpassing the 500 euro mark.
