FRANKFURT (dpa-AFX) - Investors are not letting up on defense stocks in the face of armed conflicts around the world. On Monday, Rheinmetall's share price rose by more than two percent, enabling the Group to continue its record run. The share price is approaching the 420 euro mark. In 2024, the shares remain by far the best DAX stock with a price gain of almost 50 percent - well ahead of the technology giant SAP.

Other German defense stocks were also in demand on Monday, as shown by price gains of 5 percent for Hensoldt and 3.1 percent for Borsen newcomer Renk. The latter had recently fallen for several days after a strong debut on the stock market. Hensoldt also recovered after a setback on Friday, when the defense electronics manufacturer's outlook disappointed investors.

Hensoldt shares are still lagging behind the previous record set in April 2023, but some still believe that the share will soon reach a new high. Warburg Research, for example, raised its price target to EUR 39.50 on Monday, which would be a record. Analyst Christian Cohrs is thus reflecting the general increase in defense spending, which has been supporting the industry for some time and is driving Rheinmetall's record chase.

"In view of the recent political debates calling for sustained military spending at current levels and the expansion of European deterrence, we have raised our medium-term forecasts," Cohrs wrote in his study on Hensoldt on Monday.

The Republican US presidential candidate Donald Trump recently fueled speculation with the threat that he would refuse American support to defaulting NATO partners in the event of a Russian attack. Until recently, Germany did not meet the two percent demanded by the NATO member states. However, this requirement is to be met this year and in the coming years with the help of a special fund of 100 billion euros.

French President Emmanuel Macron is organizing an international support conference for Ukraine this Monday in Paris. The future of Europe is at stake in the conflict with Russia, said a presidential advisor in Paris ahead of the meeting, which was organized at short notice. Accordingly, military aid from Europeans must do justice to the tense situation on the front in Ukraine./tih/bek/mis