Rheinmetall: shares up after UBS upgrade.

(CercleFinance.com) - The Rheinmetall share was up nearly 6% at 71.
8 euros on Tuesday in Frankfurt after UBS analysts upgraded their rating on the share from "neutral" to "buy," while raising their target price from 63 euros to 80 euros.

According to UBS, the German industrial group's Defense division is, for the first time since 2012, expected to post a positive cash conversion rate when the group unveils its 2016 accounts on 23 March.

UBS continues, saying that it believes that this is a sustainable change, which the share price is not reflecting yet.

For UBS, Rheinmetall is best positioned to benefit from a rebound in German military spending, which accounts for 26% of its orders.

Regarding the group's automotive division, it should - according to UBS - benefit from the advent of the electric car and stricter emission rules set for vehicles.

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