Arms boom Steyr and Deutz benefit from increasing defense expenditures

Source: dpa 1 min Reading Time

The stock rally of defense values has now also affected Deutz shares, as reported by dpa.

The defense industry is booming in light of the global situation. Companies like Deutz and Steyr Motors are now experiencing positive effects. The stock values are rising immensely. Here is more about it ...(Image: Trade world)
The defense industry is booming in light of the global situation. Companies like Deutz and Steyr Motors are now experiencing positive effects. The stock values are rising immensely. Here is more about it ...
(Image: Trade world)

In the afternoon, shares of the engine manufacturer Deutz surged by nearly one-fifth to their highest level since November 2021. This made them clear leaders in the "SDax," it is said. Since the beginning of the year, Deutz has gained over 70 percent. However, besides defense companies, investors recently also sought other beneficiaries of the multi-billion euro financial package, which the Bundestag has now approved. Deutz investors were apparently inspired by the Austrian engine maker Steyr Motors, whose shares have experienced a steep climb, as experts suspect. Deutz might also benefit from the increasing defense expenditures with its engines.

This is what has happened at Steyr Motors regarding the topic

And the investment firm Mutares wants to reduce its involvement in engine manufacturer Steyr Motors after its recent stock rally. This step aims to increase the free float due to very strong investor demand. Mutares intends to remain a significant shareholder of Steyr and expects a significant gross proceeds from the planned stake sale. Recently, the rally of defense stocks also affected Steyr Motors. They have now reached a record high of 390 euros. At the end of February, they were still below 20 euros. Currently, Mutares holds nearly 71 percent of Steyr shares. The free float is only around 11 percent, which is so low that rising investor demand can quickly lead to a tight market with strong price jumps.

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