Analyst Opinions and Price Targets
- UBS: Analyst Andre Kukhnin confirms an ambitious price target of €2,200 and maintains a “buy” rating. He supports this with the stable demand for modern defense technology and Rheinmetall’s ability to scale reliably.
- Perry: The price target has been increased from €2,100 to €2,250, and the “Overweight” rating remains in place. This indicates confidence in Rheinmetall’s long-term growth potential.
- Jefferies & Co: Chloe Lemarie confirms a price target of €1,880 and maintains a “buy” rating. 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 is leading to persistently high demand for modern defense technology, benefiting Rheinmetall as one of the few scalable suppliers in Europe.
- Stable Order Book: Rheinmetall has a stable order book that extends well into the future. This provides high visibility and security for future growth.
- Operational Excellence and Innovation: The company demonstrates operational excellence and innovation, underscored by consistent investments in modern manufacturing technologies.
- Manageable Risks: Geopolitical uncertainties and regulatory changes are assessed as manageable and controllable risks.
Conclusion
Despite temporary revenue weakness, Rheinmetall stock remains in focus for analysts due to its long-term growth prospects and stable market conditions. The optimistic price targets and the ongoing “buy” recommendation suggest that the company remains on a growth trajectory.