Close menu




March 27th, 2024 | 08:45 CET

Shares in Focus: TUI, Rheinmetall, and Defense Metals with good reasons for price increases

  • Mining
  • RareEarths
  • armaments
  • travel
Photo credits: pixabay.com

The TUI share was one of the top performers on the German stock market yesterday. The EUR 7 mark was exceeded, making things exciting on the chart. Analysts expect significantly higher prices for the tourism group. Rheinmetall shares are among the top performers of the year. An end to the price increase is not in sight. The armaments group has announced a new order worth billions. The manufacture of armaments, aircraft, cruise ships and numerous other high-tech products would not be possible without rare earths. However, most of these come from China and Russia. This makes the Defense Metals share interesting. The Company is making great strides with its rare earths project in Canada. The share should also benefit from this progress.

time to read: 3 minutes | Author: Fabian Lorenz
ISIN: TUI AG NA O.N. | DE000TUAG505 , RHEINMETALL AG | DE0007030009 , DEFENSE METALS CORP. | CA2446331035

Table of contents:


    Defense Metals: Rare earths for Europe?

    Defense Metals has confirmed in the past that governments and defense companies regularly inquire about the development of the Wicheeda project in the Canadian province of British Columbia and discuss potential partnerships. Contacts are expected to intensify significantly this year. The Company is working on the preliminary feasibility study and discussing further financing.

    Defense Metals recently provided an update on the status of the Wicheeda project. All test work has been completed to commence the Preliminary Feasibility Study (PFS). This has produced high-grade mineral concentrate grading 50% total rare earth oxide with a recovery rate of 80%. Eleven samples of the mixed rare earth precipitates from the test work have been sent to potential partners, processors or end users. Other tasks within the scope of the preliminary feasibility study, including the planning of the open pit mine and the cost-benefit calculations for tailings storage, are well advanced. The Company is, therefore, fully on schedule to complete the PFS in the second quarter of 2024.

    Defense Metals has already begun examining further financing options and strategic partnerships so that no time is lost and the feasibility study can begin immediately. The Company is expecting strong interest from Europe.

    Rheinmetall: German Armed Forces award billion-dollar contract

    It is quite possible that a defense company will join Defense Metals as a strategic partner. Due to geopolitical developments, companies in the sector are currently seeing significant financial gains. In Germany, Rheinmetall and Hensoldt are among the top-performing shares, while the order books are filling up.

    Rheinmetall announced a new billion-dollar order just a few days ago. The Bundeswehr has commissioned the Company to supply the "infantry heavy weapon carrier". The order is worth around EUR 2.7 billion, and delivery is scheduled to begin next year. The 123 vehicles ordered are based on the Boxer Combat Reconnaissance Vehicle (CRV), the wheeled armored reconnaissance vehicle of the Australian armed forces, which Rheinmetall also builds.

    Rheinmetall CEO Armin Papperger comments: "We are very proud to supply the Infantry Heavy Weapons Carrier, a key element of the German Army's new 'Medium Forces' category. To provide the army with the required combat vehicles as quickly as possible, we are integrating not only our German but also the Australian sites in our Rheinmetall network."

    TUI: Technically exciting

    TUI is currently looking very exciting on the chart. The share is on the verge of overcoming the resistance at EUR 7. If this succeeds, the stock would break out of the sideways movement that has been ongoing since April 2023 and the path to the upside would be clear. While most analysts are still cautious, Morgan Stanley recently upgraded the share from "Equalweight" to "Overweight". At the same time, the price target was raised from EUR 9 to EUR 10. For the analysts, the opportunities currently outweigh the risks for TUI. TUI will publish its half-year figures on May 15. Hopefully, there will then also be a concrete outlook for the current summer season. In any case, the booking trend over the winter was promising.


    Defense Metals is without question the hot stock of the three discussed. However, with a market capitalization of around CAD 55 million, the downside risk appears to be limited. The share is currently trading at EUR 0.12. In April 2023, it was EUR 0.22. Wicheeda is more developed today and should also be a good deal further ahead with potential partners. The demand for rare earths from Western countries has by no means decreased. The demand for military equipment is also increasing; however, it should be noted that Rheinmetall also needs to invest in order to process all the orders. The Company still has to grow into the valuation. The TUI share is exciting. If the share can establish itself sustainably above EUR 7, the way up should be clear for the time being.


    Conflict of interest

    Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as "Relevant Persons") may hold shares or other financial instruments of the aforementioned companies in the future or may bet on rising or falling prices and thus a conflict of interest may arise in the future. The Relevant Persons reserve the right to buy or sell shares or other financial instruments of the Company at any time (hereinafter each a "Transaction"). Transactions may, under certain circumstances, influence the respective price of the shares or other financial instruments of the Company.

    In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships.

    For this reason, there is a concrete conflict of interest.

    The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies.

    Risk notice

    Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on news.financial. These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such.

    The content is expressly not a financial analysis, but a journalistic or advertising text. Readers or users who make investment decisions or carry out transactions on the basis of the information provided here do so entirely at their own risk. No contractual relationship is established between Apaton Finance GmbH and its readers or the users of its offers, as our information only refers to the company and not to the investment decision of the reader or user.

    The acquisition of financial instruments involves high risks, which can lead to the total loss of the invested capital. The information published by Apaton Finance GmbH and its authors is based on careful research. Nevertheless, no liability is assumed for financial losses or a content-related guarantee for the topicality, correctness, appropriateness and completeness of the content provided here. Please also note our Terms of use.


    Der Autor

    Fabian Lorenz

    For more than twenty years, the Cologne native has been intensively involved with the stock market, both professionally and privately. He is particularly passionate about national and international small and micro caps.

    About the author



    Related comments:

    Commented by André Will-Laudien on June 17th, 2024 | 06:45 CEST

    Acute threat? Armaments and high-tech in the crosshairs: Aixtron, Almonty Industries, Rheinmetall and Hensoldt

    • Mining
    • Tungsten
    • hightech
    • Defense
    • armaments

    The recent European elections have enabled the conservative camp to make significant gains. Undoubtedly, a whole bouquet of issues has led to the so-called "shift to the right". In times of war, however, the neutral observer may not be surprised that the self-proclaimed peace parties, represented by the colours red and green, have lost considerable ground. After all, the competence for peacemaking and security in Europe tends to be found in the conservative camp. The capital markets currently favour high-tech and armaments, orders are booming, and growth is assured for years to come. It is now crucial for stock market players to take a closer look at these sectors, as the high-yield performers of the first half of the year appear to be correcting more strongly. What will happen here in the medium term?

    Read

    Commented by Fabian Lorenz on June 13th, 2024 | 07:00 CEST

    Stocks on the verge of a breakout! Rheinmetall, TUI, Desert Gold

    • Mining
    • Gold
    • Defense
    • Travel

    Will Rheinmetall soon reach a new all-time high? An insider thinks so and is buying a sizeable block of shares in the armaments group. The news situation could hardly be better for the DAX-listed company. The price of gold could also break out and rise to USD 2,700 in the next wave, according to a renowned expert. Desert Gold should benefit noticeably from this. The Company's market capitalization is only a fraction of the proven gold resource, and drilling continues. And what is TUI doing? The share is not making any real progress. However, it should benefit from the FTI collapse, and the crucial summer season brings a high booking volume.

    Read

    Commented by André Will-Laudien on June 12th, 2024 | 07:15 CEST

    After the election, buy a combustion engine now? Mercedes-Benz, Volkswagen, Globex Mining and BYD on the test track

    • Mining
    • Gold
    • Commodities
    • Electromobility
    • Batteries

    The crushing defeat of the green camp in the EU elections has caused a stir in the automotive industry. Will the ban on combustion engines be overturned in favour of a general openness to technology? It is well known that the best conventional vehicles come from Germany, and they are demonstrably no more harmful to the climate than current e-vehicles. Voters have finally lifted the green veil, and the doctrine of the know-it-alls is now in retreat. From a climate perspective, investing in battery storage systems makes sense, but they do not necessarily have to be installed in vehicles. How can investors benefit from the current situation?

    Read