June 2nd, 2025 | 07:00 CEST
Rheinmetall, Volatus Aerospace, C3.ai – Upgrades and explosive results
The quarterly reporting season is drawing to a close, with chip giant Nvidia being the last of the Magnificent 7 stocks to present its figures. Analysts' ambitious targets were once again smashed, but uncertainties surrounding the trade war between China and the US are dampening the outlook for the industry leader. In contrast, uncertainty about the geopolitical situation continues to boost business for defense companies, which are receiving ever-higher price targets from analysts.
time to read: 4 minutes
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Author:
Stefan Feulner
ISIN:
RHEINMETALL AG | DE0007030009 , VOLATUS AEROSPACE INC | CA92865M1023 , C3.AI INC | US12468P1049
Table of contents:
"[...] In Canada, there is $1.75 of debt for every dollar of disposable income - and that was true even before the pandemic. [...]" Karim Nanji, CEO, Marble Financial
Author
Stefan Feulner
The native Franconian has more than 20 years of stock exchange experience and a broadly diversified network.
He is passionate about analyzing a wide variety of business models and investigating new trends.
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Rheinmetall – Another upgrade
Even after the mega boom that followed Russia's invasion of Ukraine, analysts are not holding back on further upgrades for defense companies. Experts still see significant upside potential for Düsseldorf-based Rheinmetall, which has posted a performance of over 1,700% to EUR 1,833.40 since February 2022. Swiss banking giant UBS raised its target price to EUR 2,200, citing the geopolitical reality in which defense is becoming a growth sector. Unsurprisingly, the vote for the stock is still "Buy."
The team around CEO Armin Papperger is undeniably busy in all areas. Rheinmetall subsidiary blackned is planning to develop mobile tactical networks for the German military in cooperation with Nokia. Nokia's 5G technology, together with blackned's military software, will create an integrated platform for Rheinmetall's Battlesuite app store.
According to Giuseppe Targia, Head of Space and Defense at Nokia, the focus is on providing a stable, uninterrupted connection with high data rates. This infrastructure is intended to give military units on the battlefield a decisive tactical advantage.
Volatus Aerospace – Well positioned
Analysts at Ventum Capital Markets predict a sharp upward trend for the shares of drone company Volatus Aerospace. A new target price of CAD 0.32 has been announced, with a "Buy" rating. This means that the share has a potential of over 126% based on the current price of CAD 0.14.
The reason for the optimism undoubtedly lies in the changing times and the rearmament of NATO members. Modern warfare is undergoing a profound transformation: drones have evolved from reconnaissance tools to central elements of military strategy. According to the Stockholm International Peace Research Institute (SIPRI), the global market for military drone technology grew by around 12% annually between 2017 and 2023. Forecasts by the Defense Intelligence Agency (DIA) assume that global defense spending on unmanned aerial vehicles will double to over USD 20 billion by 2030.
Volatus Aerospace covers a wide range of drone services for civil and military purposes – from surveillance and transport to autonomous mission planning. Its service portfolio includes drones with high-resolution cameras, pilot training, and maintenance and repair. In addition, the Canadian company operates its own drone fleet and develops specialized software solutions for automated missions. In the past fiscal year, 3,269 drone pilots were trained, 4,189 surveillance flights were conducted, and around 746 transport missions were successfully completed.
The extensive partner network of 60 OEM partners represents a clear advantage over comparable companies. Cooperation agreements have been established with Dufour Aerospace, Kongsberg, Ondas, Draganfly, DroneUP LLC, MatrixSpace, and others.
The figures for the first quarter highlight the successful growth course the Company has embarked upon. Volatus Aerospace generated revenue of CAD 5,713,158 with a gross margin of 32%. Adjusted EBITDA improved by 30%, or CAD 402,004, between the first quarter of 2024 and the first quarter of 2025. Cash flow from operating activities amounted to CAD 1,448,565.
Glen Lynch, CEO of Volatus Aerospace, commented on the results: "In the first quarter of 2025, Volatus focused on navigating ongoing geopolitical challenges by diversifying our business and obtaining key regulatory approvals. These strategic steps position us to convert a growing pipeline of orders into realized revenue."
C3.ai – Significantly above forecasts
In addition to Nvidia, AI company C3.ai, valued at USD 3.06 billion, reported record figures at the end of last week, resulting in an after-hours gain of over 12% to USD 23.80.
For the quarter ending April 30, C3.ai reported an adjusted loss of USD 0.16 per share on revenue of USD 108.7 million, representing a 26% increase over the prior year. Both figures exceeded analysts' expectations of a loss of USD 0.20 per share and revenue of USD 108.53 million. Impressively, subscription revenue accounted for 80% of total revenue for the quarter, and the trend is rising.
The enterprise AI application software provider has strategic partnerships with Microsoft, AWS, Google Cloud, and McKinsey QuantumBlack. In addition, it expanded its partnership with Baker Hughes Co., which focuses on the development and marketing of AI solutions for companies in the oil and gas and chemical industries. It is also interesting to note that the Company has significantly increased its presence in the state and local government sector and has signed expanded contracts with the US Department of Defense (DoD), the US intelligence community, the US Air Force, and the US Marine Corps.
C3.ai is in the process of scaling its business model. Although the Company is still posting losses, we see significant growth potential thanks to contracts with tech giants like Microsoft and Google. The Company is well equipped for further expansion with a cash cushion of over USD 742.7 million. In addition, we expect consolidation in the still-young AI sector in the coming years, with increasing acquisitions by major technology companies. Tech veteran and C3.ai CEO Tom Siebel is very familiar with this, having sold his company, Siebel Systems, to Oracle in 2005.
AI company C3.ai reported significantly better results than analysts had expected. Rheinmetall once again received an upgrade from the analyst community. Volatus Aerospace posted strong growth figures for the first quarter of the current fiscal year.
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