LEvel Look interesting . see attached.
JPM Call this Morning :
Rheinmetall a New Overweight at JPMorgan, Thales Cut to Neutral
JPMorgan initiates Rheinmetall at overweight and cuts rating on Thales to neutral as it rejigs European defense stock preferences.
- Sees a 5-10 upcycle in global defense spending and now has overweight ratings on BAE Systems, Hensoldt and Babcock, along with Rheinmetall, analyst David Perry says
- Rheinmetall started at overweight with EUR240 PT, as seen delivering best top- and bottom-line growth among European defense stocks in the next three to five years, looks attractively valued against peers and should secure some large contracts in coming two years
- Thales cut to neutral from overweight as sees less upside for the stock compared to peers; also has neutral ratings on Dassault Aviation and QinetiQ
- NOTE: Rheinmetall now has 15 buy ratings, 2 holds and zero sells among analysts tracked by Bloomberg, while Thales has 8 buys, 8 holds and 1 sell