Close menu

April 12th, 2022 | 18:33 CEST

The biggest crisis since 1945: Rheinmetall, Kleos Space, Airbus

  • armaments
  • Space
Photo credits:

Foreign Minister Annalena Baerbock has spoken out in favor of supplying "heavy weapons" to Ukraine. For years, arms deliveries were a thorn in the side of the Greens. It is remarkable that Baerbock, who has always been considered "Realo", is now even counted among the "hawks" on the big international political stage. Even though critics from all ranks may interpret the move negatively, Baerbock is demonstrating pragmatism and toughness. These qualities could be the key to de-escalation in the most profound crisis since World War II. We examine the current economic climate and look at three companies and their shares.

time to read: 3 minutes | Author: Nico Popp
ISIN: RHEINMETALL AG | DE0007030009 , KLEOS SPACE CDI/1/1 | AU0000015588 , AIRBUS | NL0000235190

Table of contents:

    Rheinmetall: Booming

    While Russian troops have withdrawn from the region around Kyiv and all military analysts expect fighting in the east will now be fought harder, the escalation spiral is also turning in the west. Jarosław Kaczyński, leader of Poland's ruling PiS party, has recently indirectly suggested that the plane crash that killed Poland's incumbent president and twin brother Lech Kaczyński in 2010 may not have been an accident. He will soon present evidence of this, the politician said. These accusations were made back in 2010, but Kaczyński refers to sources. In the current geopolitical situation, possible evidence would be explosive. Above all, because it can be assumed that Russia is likely to reject this alleged evidence and that it could further drive the escalation spiral.

    Almost simultaneously, the UK has ordered another one hundred Boxer wheeled tanks from German arms manufacturer Rheinmetall. Coupled with Annalena Baerbock's demand that heavy weapons also be supplied to Ukraine, it is clear that the share price jumps immediately after the outbreak of war were by no means a flash in the pan. Companies like Rheinmetall are likely to benefit from the turn of the times for many years to come. The threat situation in Europe has rarely been greater. In addition to deliveries directly to the war zone, the countries of Europe are also likely to increase their military significantly. Contrary to some fears, this is not likely to remain lip service. In view of the specific threat situation, it seems unlikely that parts of the arms expenditures will be relabeled to benefit other areas. Rheinmetall sets course for annual high!

    Kleos Space: Security tech as a misjudged opportunity

    The Kleos Space share is far from its 52-week high of EUR 0.71. However, this is probably due less to the Company's prospects than to the fact that too few investors know the value. After all, the Company fits perfectly into the profile of requirements that the world has been placing on innovations in the security industry since February. Kleos Space operates several satellite clusters. The Company recently launched more satellites into orbit as part of a SpaceX mission. The satellites monitor radio traffic on Earth, and software from Kleos Space analyzes it. So far, shipping companies that want to arm themselves against pirates have been potential customers of Kleos Space. Border guards and intelligence agencies can also work with the data. In a world where refugee flows are weaponized, and human suffering degenerates into a cynical media commodity, information can prevent suffering.

    Maxar Technologies, for example, shows that private companies can play a significant role in the current war. The Company supplies satellite photos and provided photos of the Russian military convoy around 60 kilometers and evidence of the background to the massacres at Butscha. Kleos Space has signed a cooperation agreement with Satellogic, which operates similarly. The aim is to combine sales activities, as the two business models complement each other. The agreement shows that Kleos Space is seen worldwide as a renowned company around satellites and data. The Company plans to take off commercially this year. The market environment seems promising. The stock is not yet one of the profiteers of the war.

    Airbus: A lot of mediocrity

    Airbus shares have benefited from the war - but only briefly. In addition to defense equipment, the Company also offers activities in space, such as the Ariane rockets. However, SpaceX has given them some competition. The share has lost around 12% of its value over a three-month period. One reason for this is that the aircraft business is not doing well. Deliveries for March have fallen short of expectations. However, analysts like those at Goldman Sachs still take a positive view of the share, pointing to an "improved product mix". However, the stock is not currently generating much imagination.

    At a time when nothing seems certain anymore, and the truth is becoming the plaything of the services, facts matter. While defense companies benefit significantly from the uncertain situation, the space data company Kleos Space has not yet received much attention. Given the lower market capitalization compared to the big names, there is potential around Kleos Space.

    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 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

    Nico Popp

    At home in Southern Germany, the passionate stock exchange expert has been accompanying the capital markets for about twenty years. With a soft spot for smaller companies, he is constantly on the lookout for exciting investment stories.

    About the author

    Related comments:

    Commented by André Will-Laudien on May 22nd, 2024 | 07:15 CEST

    The party is over - Sell defense stocks now! Rheinmetall, First Hydrogen, Renk and Hensoldt

    • Hydrogen
    • renewableenergies
    • Defense
    • hightech
    • armaments

    While the DAX and NASDAQ are reaching new highs, sectors like armaments and high-tech are taking a break. After an extended rally, it is also good to see other stocks coming back into focus. A surprising rebound in Plug Power sent the bombed-out stock soaring by 80%, but unfortunately, 60% of this gain was quickly lost. Easy come, easy go! A significant sell-off occurred at Renk, raising the question of when Rheinmetall and Hensoldt might follow suit. We analyze the current trends in more detail.


    Commented by Fabian Lorenz on April 24th, 2024 | 07:30 CEST

    Is China getting serious? Rheinmetall and Almonty Industries profit! Varta share on the brink?

    • Mining
    • Tungsten
    • Defense
    • armaments
    • renewableenergies

    Is China really preparing for an attack on Taiwan? It is well known that China is massively increasing its gold reserves. But why tungsten, too? After all, China itself is the largest producer of this raw material, which is not only in demand in the arms industry. However, as noted recently by the CEO of Almonty at an investor conference, the Chinese are currently buying large quantities of tungsten. We can only speculate about the reasons behind this. What is clear is that the Western world needs to secure its tungsten supply. Almonty Industries is already producing in Europe and plans to commission a huge tungsten mine in South Korea later this year. Revenue and profits should then rise sharply and lead to a revaluation of the share. Rheinmetall has undergone a revaluation in the past two years. Can it reach EUR 600? Varta, on the other hand, is on the brink. Analysts do not see any upside, even at the current price level.


    Commented by Fabian Lorenz on April 16th, 2024 | 07:55 CEST

    Drumbeat at TUI! Caution with Renk and Nel! dynaCERT Stock with Potential!

    • Hydrogen
    • Travel
    • Defense
    • armaments

    A drumbeat is sounding at TUI! In an interview, the tourism group's CFO hints that shareholders can soon look forward to a dividend again. On the other hand, tensions in the Middle East are causing short-term uncertainty in tourism shares. Conversely, defense stocks are once again benefiting from the possibility of an escalation. However, analysts currently see little further potential for Renk. The retrofit kits from dynaCERT offer great potential for reducing emissions from diesel vehicles. If VERRA clears the way for CO2 certificates, the share could go through the roof. Is the Company preparing for this with a personnel change? In contrast, the Nel share seeks support, and tomorrow promises to be exciting.