**The shares of the defense company HENSOLDT defied the general downward trend in the German defense sector on Monday and recorded a significant increase. While the stocks of competitors such as Rheinmetall and RENK came under selling pressure, HENSOLDT shares rose temporarily by 2.91 percent to 29.68 euros, continuing their recovery from the year's low.**

Critical for the Rise in Share Price were Positive Analyst Comments from Deutsche Bank and Kepler Cheuvreux.

Aymeric Poulain from Kepler Cheuvreux also sees potential in the stock. While he also reduced his price target to 34 euros, he maintains his buy recommendation. Poulain expects that valuations in the defense sector will continue to adjust overall, but sees a stable foundation at HENSOLDT. Particularly, improvements in the Optronics business area could lead to positive margin contributions in 2025 if they occur as projected.

Since the beginning of the Ukraine war in February 2022, HENSOLDT shares have greatly benefited from increased defense spending. The shares, which were traded at around 12 euros shortly before the war, reached a record high of 44.58 euros at the beginning of April this year. Since then, however, they have lost about 38 percent of their value.

Rheinmetall, another heavyweight of the German defense industry, also reached its previous peak in April. Since then, the shares of the DAX member have declined by about 16 percent. Even the announcement of a major order from Denmark for the Skyranger mobile air defense system could not support the stock price on Monday.

The optimistic assessments of the analysts support HENSOLDT despite the industry-wide challenges. The potential margin improvements in 2025 as well as the stable mid-term goals could enable a sustainable recovery for the stock.