FRANKFURT (dpa-AFX) - German defense stocks such as Rheinmetall, Hensoldt and Renk, which have been weakening after their record highs at the beginning of April, benefited from a positive analyst study on Friday. Hauck & Aufhäuser Investment Banking recommends buying the shares in its initial assessment.

"The need to defend oneself has outlasted history and will continue to be vital in the future, at least judging by the latest geopolitical developments," wrote analysts Marie-Therese Grübner and Simon Keller in their opening study on the three companies.

The commitment to reliable investments in defense is also part of the alliance obligations, for example in NATO. Governments also focus on domestic production as a solution that is available at all times without dependence on foreign sources. Reliable partners are then rarely replaced.

Meanwhile, Armin Papperger, head of the Rheinmetall armaments group, called for significantly more military spending to make Germany capable of defending itself. "The western world is not equipped for a conventional war," said the CEO of Germany's largest arms manufacturer to the Wirtschaftspublizistische Vereinigung. China and Russia have been heavily arming themselves. The German defense budget should be increased by at least 30 billion euros annually from the current 52 billion euros.

With price targets of 680 euros for Rheinmetall, 49 euros for Hensoldt and 35.40 euros for Renk, the two Hauck & Aufhäuser analysts are signaling significant potential of up to 35 percent in each case. All three shares reached record highs at the beginning of April. Subsequently, there was a downward trend - particularly marked in the case of Renk at 35 percent./ag/zb/mis/jha/