A bombshell and blatant undervaluation: RENK, Rheinmetall, and Veganz Group

Veganz Group: Revaluation has only just begun

The Veganz Group is currently valued at less than EUR 40 million. One subsidiary alone could be worth more than twice as much. Investors should therefore not be deterred by the strong share price performance in recent months; the revaluation following the restructuring into a foodtech investment holding company has only just begun. According to both the former and current CEOs, there is still potential for significant price gains.

According to preliminary figures, Veganz achieved a net profit (EAT) of EUR 23.65 million in the first half of 2025. This corresponds to more than half of the market capitalization and is mainly attributable to the sale of the subsidiary OrbiFarm GmbH. Such "special effects" are likely to occur more frequently in the future.

Veganz intends to continue to leverage hidden reserves through sales or IPOs. This was clarified by the outgoing founder and CEO, Jan Bredack, in the podcast "Müllers Woche" (https://muellers-woche.podigee.io/5-mw3125), which focuses on German small caps. Bredack will step down from his position and move to OrbiFarm. He will remain a major shareholder in Veganz and emphasized that Veganz will continue to benefit from the positive development of its former subsidiary in the future.

Bredack described the development at the subsidiary Mililk as extremely promising. Demand is "extreme" – both for the product and among investors. Mililk FoodTech has developed a revolutionary technology for producing food using a patented 2D printing process. Interest is huge, especially in the US and Asia, even though only milk alternatives are currently available. Facilities for milk and coffee creamer could follow soon. Overall, Veganz is addressing markets worth billions. Accordingly, the subsidiary could go public in the future. Bredack considers the previously announced valuation of EUR 80 million to be outdated due to the strong operational development.

Given these prospects, the incoming Veganz CEO, Rayan Tegtmeier, also considers the share to be massively undervalued: "My goal is to press ahead with the path we have chosen, tap into new growth markets, and get institutional investors excited about Veganz in order to gradually reduce what I believe is the blatant undervaluation of the share."

Incidentally, the research currently available from mwb (target price EUR 21.50) no longer appears to reflect the latest developments. Anything other than a significant increase in the target price in the next update would be a big surprise.

Rheinmetall: Price targets rising – Will the forecast soon follow suit?

Will Rheinmetall shares soon break through the EUR 2,000 mark? The share price is currently trading at around EUR 1,770. In any case, there is a good chance that the sideways movement that has been ongoing since May could soon come to an end. Operations at Germany's largest defense contractor continue to run smoothly. Most recently, the German Armed Forces called up part of the EUR 3.5 billion framework agreement. Rheinmetall is to deliver trucks worth EUR 770 million.

Analysts at mwb Research believe that this strengthens the visibility for a strong performance in the second half of the year. The order highlights the growing demand for Rheinmetall's modular vehicle platforms across NATO countries. Given the structural increase in defense spending throughout Europe, Rheinmetall is well-positioned to achieve above-average growth thanks to its growing share of equipment sales and increasing presence in the US market. Analysts even anticipate Rheinmetall will raise its forecast in the second half of the year. Against this backdrop, the "Buy" recommendation with a price target of EUR 2,288 is reaffirmed. Rheinmetall remains a key structural growth story in the European defense industry with a CAGR of around 27% through 2030.

Analysts even anticipate that Rheinmetall will raise its forecast in the coming months. Against this backdrop, the "Buy" recommendation with a price target of EUR 2,288 is reaffirmed. Rheinmetall remains a key structural growth story in the European defense industry, with a projected CAGR of around 27% through 2030.

RENK: Share price ripe for EUR 84?

While analysts are likely to raise their price targets for Veganz, experts at RENK have already reacted. Jefferies recently made positive comments about the transmission specialist. An industry study pointed out that it is still not too late to enter the sector, thanks to the supercycle. RENK is well-positioned in the land defense sector. Analysts are expecting further large orders. As a result, the price target has been raised from EUR 60 to EUR 80.

At Berenberg, the fair value of RENK shares has even climbed from EUR 72 to EUR 84. Analysts have raised their forecast for the entire industry. They pointed to growing momentum in the sector and expect RENK shares to benefit from the quarterly figures published on August 13. RENK shares are currently trading at around EUR 69.

The revaluation at Veganz appears to have only just begun. The subsidiary Mililk alone seems to be worth more than the stock market currently attributes to the entire group. Those speculating on a sharp correction in defense stocks may be disappointed. Rheinmetall and RENK will publish figures in the coming days. Breakouts from the sideways movement would come as no surprise.