0718 GMT - Rheinmetall expects the North Atlantic Treaty Organization to increase its defense spending target to between 2.5% and 3.5% of gross domestic product at its June summit, and allocate around half of its budgets to military equipment, according to Morgan Stanley. The bank hosted the German arms maker's Chief Financial Officer Klaus Neumann for a roadshow in New York and Boston. Rheinmetall said it expects to win market share for order intake from 17% to 20-25% in the coming years, analysts Marie-Ange Riggio and Ross Law say. Second-quarter orders could be low due to the change of government in Germany, with new orders from higher defense spending likely coming in from late third-quarter or fourth-quarter, they add. Rheinmetall's 2025 guidance could still be updated, they say. Shares are up 1.1% at 1,395 euros. (cristina.gallardo@wsj.com)
(END) Dow Jones Newswires
April 11, 2025 03:18 ET (07:18 GMT)
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