Analyst Opinions and Price Targets
- UBS: Analyst Andre Kukhnin confirms an ambitious price target of €2,200 and maintains a “buy” rating. He justifies this with the stable demand for modern defense technology and Rheinmetall’s ability to scale reliably.
- Perry: The price target has been raised from €2,100 to €2,250, and the “Overweight” rating remains intact. This shows confidence in Rheinmetall’s long-term growth potential.
- Jefferies & Co: Chloe Lemarie confirms a price target of €1,880 and maintains a “buy” rating. The stable growth prospects and strong visibility in the order books are cited as reasons.
Reasons for the Bullish Outlook
- Stable Demand for Defense Technology: The geopolitical situation leads to persistently high demand for modern defense technology, favoring Rheinmetall as one of the few scalable suppliers in Europe.
- Stable Order Book: Rheinmetall has a stable order book that extends far into the future. This provides high visibility and security for future growth.
- Operational Excellence and Innovation: The company demonstrates operational excellence and innovative strength, underpinned by consistent investments in modern manufacturing technologies.
- Calculable Risks: Geopolitical uncertainties and regulatory changes are deemed calculable and manageable.
Conclusion
Despite temporary revenue weakness, Rheinmetall stock remains in the analysts’ spotlight due to its long-term growth prospects and stable market conditions. The optimistic price targets and the continued “buy” recommendation indicate that the company remains on a growth trajectory.