Defense stocks catching their second wind: Almonty, Boeing, Rheinmetall

Defense stocks: Where is there still room for growth?

It is a truism that the future is traded on the stock market. The fact that this future is sometimes viewed with optimism and sometimes with caution is decisive for daily price movements. For several weeks now, classic defense stocks such as Rheinmetall have been tending to move sideways. The reason: many orders have been placed, and the market has already given defense blue chips premature praise. This is also reflected in analysts' opinions. While 14 analysts see an average price potential of around 20% for Rheinmetall, 25 analysts expect a rise of just over 23% for US aircraft manufacturer Boeing. For Almonty, the Marketbeat platform shows an average price target of USD 9.83 – the platform only takes four analysts into account. In percentage terms, the potential is a whopping 41%. This shows that Almonty is currently flying under the radar compared to other defense stocks.

Analysts at D.A. Davidson recently confirmed their "Buy" rating for Almonty shares and raised their price target from USD 11 to USD 12. The basis for this decision is a significantly improved market environment for tungsten, whose price has risen by more than 100% since the beginning of the year. According to the analysts, this is primarily due to Chinese export restrictions, lower production quotas, and increasing demand in Western industries. This should also be reflected in revenue: D.A. Davidson expects revenue to increase from USD 44 million to over USD 500 million between 2025 and 2028. This expected development alone shows that Almonty shares are full of potential.

Almonty buys tungsten mines at a bargain price

This is also due to the development of the tungsten producer and technology leader over the past years. Almonty exports the expertise from its Panasqueira mine in Portugal across the globe. In the coming weeks, Sangdong in South Korea, one of the largest tungsten projects in decades, is set to begin production. Immediately after the start of production, Almonty plans to expand the mine. Within two years, Sangdong is expected to account for 40% of tungsten produced outside China. The purchase of a mine in the US state of Montana, which is already well developed and, with the support of Almonty's tungsten professionals, is expected to go into production in the second half of 2026, is also currently underway. The previous owners will continue to manage the project and will receive a payment of around USD 10 million. This comparatively modest amount highlights how crucial Almonty's expertise is for the project.

Almonty was already making a name for itself in the mid-2010s, securing unique tungsten projects on outstanding terms. For example, the Panasqueira mine changed hands for just one euro – while the previous owners were overwhelmed by the project, Almonty CEO Lewis Black led the Company to profitability despite cheap Chinese competition at the time, opened a modern tungsten laboratory at the site, and worked with Portuguese employees to improve the efficiency of tungsten mining and processing. The result: as Lewis Black said in an interview with the Frankfurter Allgemeine Zeitung (FAZ) a few weeks ago, the Company has now outpaced its Chinese competitors in terms of technology. Black estimates that his company is ten years ahead of the competition, which has only been dealing with efficient processes since the end of China's tungsten subsidies and still needs to learn the art of tungsten mining.

Almonty outperforms Chinese competitors – Unmatched expertise

Almonty's unique position is also demonstrated by the projected production costs of the Sangdong mine, which are expected to be around 50% of comparable Chinese projects. The planned acquisition of the Montana tungsten mine further underscores the leverage Almonty gains from its technological superiority and experienced team. As CEO Lewis Black revealed in a recent interview, he and his team have visited numerous tungsten projects worldwide in recent years and are keeping track of them. It is possible that Almonty has additional acquisition targets in its sights. While the immediate focus is on bringing Sangdong into production, additional capacity is likely to be created in the course of the coming year to seize opportunities in further projects.

The strategic advantage is obvious: no other Western company has Almonty's tungsten expertise. Even Chinese competitors are watching projects like Sangdong closely – **Black reported in his interview with FAZ that cases of suspected espionage at the site in South Korea had increased. This shows that Almonty has what many want. While giants like Boeing and Rheinmetall have already secured many orders and are also supported by numerous analysts, Almonty remains a niche investment despite its market capitalization in the billions. For investors who recognize the Company's unique position and can withstand volatile share prices should take a closer look at the stock right now.