Rheinmetall: Possible acquisitions in the US, gen. the director sees a possible doubling of the share price

On Friday, Rheinmetall CEO Armin Papperger proposed the possibility of creating a European arms consortium, which would be able to compete with the largest arms companies from the USA with its size and range of products. According to Papperger, such a consortium could have annual sales of around EUR 30-35 billion to be of sufficient size for this purpose. Rheinmetall expects sales of approximately EUR 10 billion this year. Gene. however, the director believes that thanks to a good cash flow, Rheinmetall can reach the position of a world player on its own. In this context, the company wants to focus on potential acquisitions of armories in the USA. At the same time, Papperger warned that the 100 billion special fund announced in 2022 will not be enough for Germany for its defense goals, as it may be used up as early as 2026. According to Papperger, the fund should be followed by additional spending of EUR 30 billion per year . Papperger also mentioned that Rheinmetall can increase its market capitalization from EUR 23 billion now to EUR 50 billion. However, he did not say in what time horizon this could happen.