Overview

• The European Commission is evaluating an extra levy on overprofits at top German defense firms to curb extraordinary earnings
• News of the windfall tax sent Rheinmetall shares down about 2% on June 3, marking the stock’s first major pullback this month
• Since January, Rheinmetall’s stock has surged nearly 199% on soaring orders tied to the Ukraine war and Germany’s defense expansion
• JPMorgan analysts project that Rheinmetall could still climb to €2,100 in the medium term if growth momentum holds
• Germany’s relaxed debt brake has fueled growth for RENK and HENSOLDT, whose stocks have climbed roughly 352% and 204% respectively, while some MEPs advocate partial nationalization