FRANKFURT (dpa-AFX) - The share price gains recorded by Rheinmetall since the beginning of the year were all but wiped out on Thursday amid more cautious expectations. With a decline of 6 percent to 1,580 euros, the stock approached the lower end of its fluctuation range, where it has been trading since its record high in early October. Traders pointed to somewhat more skeptical statements made during a pre-close call in which the defense group prepared analysts for the upcoming quarterly figures.
Information from Rheinmetall apparently implied a likely decline in consensus estimates, according to market sources. Analyst David Perry from JPMorgan set the tone by slashing his previously above-consensus earnings forecasts for the company through 2030 by as much as 14 percent on Thursday. "We continue to expect exceptionally strong revenue and earnings growth over the next five years, but now believe that ramping up production will be more challenging than initially assumed," the expert argued.
The dampened sentiment also affected other sector stocks on Thursday: In the MDax, shares of Hensoldt, Renk, and TKMS recently lost between 0.5 and 2.6 percent.
The defense sector is also watching the ongoing talks between Russia and Ukraine with great interest. In the United Arab Emirates, the second day of U.S.-brokered negotiations aimed at ending the war has begun. Kirill Dmitriev, special envoy of Kremlin leader Vladimir Putin, stated on state television that progress was being made./tih/ajx/zb
