RNMBF - Rheinmetall CEO says defense contractor could hit market value of 17B euros

2023-06-12 11:28:47 ET

Rheinmetall ( OTCPK:RNMBF ) ( OTCPK:RNMBY ) CEO Armin Papperger said the German defense contractor will rise in value because of increased defense spending in Europe after Russia’s invasion of Ukraine.

"Our operating income in 2025 should be about 1.5 billion euros ($1.6 billion), maybe even 1.7 billion euros. For a fair valuation, multiply that with a factor of 11 or 12. That gives you an order of magnitude," he said in an interview with German publication RND published on Saturday. "A valuation of 17 billion euros is realistic for Rheinmetall ( OTCPK:RNMBF ) ( OTCPK:RNMBY ) over the medium term."

The company’s current market value is roughly 10.5 billion euros after tripling since December 2021, Reuters reported. Rheinmetall ( OTCPK:RNMBF ) ( OTCPK:RNMBY ) makes tanks, ammunition and other military equipment.

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