Renk Stock Drops After Record High as Analyst Predicts 35% Decline
Renk's stock soared to a new high on Monday, reaching 90.24 euros, just short of its previous record. However, analyst David H. Perry from JP Morgan has raised concerns, predicting a significant drop in the stock market today.
Perry, the only analyst to rate Renk's stock at a fair value of 90 euros in August, now expects a decline of around 35 percent. His prediction is based on Renk's promise to set new medium-term targets at a capital market day in November. On that day, Renk's stock was trading at 61 euros.
Other analysts have lower target prices for Renk's stock. Goldman Sachs predicts 70.00 euros, Jefferies 80.00 euros, Deutsche Bank 75.00 euros, and Warburg Research 58.00 euros. Warburg analyst Christian Cohrs believes the 'arms boom is already priced in', despite Renk's strong results. Cohrs noted Renk's 'very favorable' ratio of orders to billings. Perry's August assessment relied on management statements about new mid-term targets for 2030, which he expected to be above current consensus estimates.
Renk's stock closed at 85.36 euros on Monday and fell further to 82.50 euros on Tuesday, nearly nine percent below its peak.
Renk's stock has experienced a significant drop after reaching a new high. Analysts' predictions vary, with Perry from JP Morgan expecting a substantial decrease in the stock market today. Renk's future performance will be closely watched as new targets are set.
