DEUTZ share: drone business as key to growth?

DEUTZ share: drone business as key to growth?

In recent weeks, the DEUTZ share price has been stable and is currently at EUR 9.41, which corresponds to a slight increase of 0.3%. This means that it is only 5.38% below its 52-week high of EUR 9.95, which was reached on September 8, 2025. How Boltwise reported, the company also developed strongly in terms of sales despite a decline in earnings per share compared to the previous year, which amounted to 0.13 euros (0.21 euros in the previous year). This rose to 518.10 million euros, while analysts are optimistic about the future development of the drone business.

The current price reflects the realigned strategy. DEUTZ AG, a traditional engine manufacturer from Cologne, is planning to enter the lucrative drone market. How Stock check emphasizes, a strategic realignment in the areas of armaments and electromobility is also sought. A takeover of a provider of electric drive systems has already been announced in order to open up new markets in the defense industry.

Growth through diversification

In the long term, this diversification into innovative areas could help DEUTZ to operate more stably and become less dependent on cyclical markets such as construction and agriculture. Analysts clearly see opportunities, particularly in the defense and drone sectors, to achieve higher-quality margins. The demand for drone technologies is increasing, which is also reflected in analyst opinions: Jorge Gonzalez Sadornil from Hauck & Aufhäuser has a price target of 11.30 euros and recommends a buy. Thorsten Reigber from DZ BANK and Stefan Augustin from Warburg Research also agree that DEUTZ has great potential.

Geopolitical tensions are leading to higher defense budgets, which could have a positive impact on DEUTZ. Innovative technologies and a large client in the defense industry could also make the company more crisis-resistant. Gevestor reports a market potential of approximately $100 billion for unmanned aerial vehicles in Europe over the next decade, which is expected to increase growth in this area.

Risks in the drone business

Despite the positive outlook, some risks remain. Political uncertainties and high investments required for the acquisition of new technologies could pose challenges for DEUTZ. There is also increasing competitive pressure from international competitors. Reliance on ESG investors could also be negatively impacted as they may consider withdrawing from defense financing.

Ultimately, the integration of the acquired company and the generation of concrete defense orders will be crucial for the medium-term price perspective. Overall, however, DEUTZ AG appears to be well positioned to benefit from the opportunities in the drone business and the defense industry.