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Martin and Northrop Are Out. 5 European Defense Stocks to Buy Right Now. - Barron's

1. European defense budgets may increase to 3% of GDP, boosting RHM. 2. Jefferies rates RHM as a Buy, targeting €1,540 per share. 3. Rheinmetall shows strong growth potential due to short-cycle manufacturing focus. 4. Stock prices have risen significantly over the past three months. 5. US defense budget risks could influence European military spending.

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FAQ

Why Very Bullish?

Increased European defense spending directly benefits Rheinmetall, historically linked to military conflicts. Similar increases have propelled stocks like RHM in previous global tensions.

How important is it?

The analysis suggests a strong investment opportunity in RHM, driven by rising European defense expenditures, making it a timely and relevant piece.

Why Long Term?

The trend of higher defense budgets may sustain growth over years, similar to past boosts during heightened geopolitical tension.

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