Update shared on 05 Nov 2025
Fair value Increased 0.36%Rheinmetall's analyst price target has been modestly increased from approximately €2,168 to €2,176. Analysts cite continued strength in revenue growth, improved margin outlook, and broad institutional confidence following several target raises across the sector.
Analyst Commentary
Recent street research reflects active coverage and a variety of perspectives on Rheinmetall, with both optimistic and measured views regarding its current valuation and growth prospects.
Bullish Takeaways- Bullish analysts continue to raise their price targets. This reflects confidence in Rheinmetall's earnings momentum and robust performance in the European defense sector.
- The company is considered to be well-positioned to benefit from a significant rearmament cycle, which is expected to fuel sustained revenue growth and new order opportunities.
- Margin improvements and strong order book visibility are highlighted as key drivers supporting upward adjustments in valuation targets.
- Positive recommendations frequently cite Rheinmetall's exposure to core European markets, especially Germany, as strengthening its market position and stability.
- Bearish analysts caution that recent share price performance has left the stock "priced for perfection." This creates a higher bar for future execution and earnings momentum.
- Some view current valuations as elevated within the sector and suggest that high investor expectations could amplify downside risk if growth moderates.
- There are concerns that while the market backdrop is supportive, elevated share prices may prompt a more selective approach among investors. This may be especially true if sector rotation occurs or order flow slows.
What's in the News
- Rheinmetall announced broad plans to transform into a one-stop shop for European defense needs, preparing to enter the shipbuilding sector and confirming upcoming divestment of its civilian businesses in early 2026 (company statement).
- The company is reportedly considering an acquisition of German shipbuilder Naval Vessels Luerssen, as Rheinmetall's supervisory board weighs the strategic purchase to expand its portfolio in naval defense, according to industry sources (reported by Bild).
Valuation Changes
- Consensus Analyst Price Target has risen slightly from €2,167.81 to €2,175.59, reflecting updated forecasts.
- Discount Rate has fallen modestly from 5.61% to 5.33%, suggesting a subtle shift in risk assumptions.
- Revenue Growth projections have increased marginally from 34.86% to 34.93%.
- Net Profit Margin estimate has improved from 12.48% to 12.83%.
- Future P/E ratio has decreased from 41.45x to 40.08x, indicating a slightly more favorable valuation outlook based on updated earnings estimates.
Disclaimer
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