Update shared on04 Sep 2025
Analysts maintain an Overweight view on Rheinmetall amid strong expectations for organic sales growth, upward EPS revisions, and robust defense-sector momentum, resulting in an unchanged consensus price target of €2102.
Analyst Commentary
- Raised expectations for sustained strong organic sales growth, with forecasts of 25% average annual growth from 2025 to 2030.
- Upward revisions to earnings per share (EPS) estimates over the medium term, reflecting improving profitability.
- Ongoing momentum in order intake and backlog amid rising European defense spending.
- Strong conviction in Rheinmetall's positioning as a leading large-cap within the European defense sector.
- Continued Overweight ratings, highlighting increased confidence in future operational and financial performance.
What's in the News
- Rheinmetall is considering acquiring German shipbuilder Naval Vessels Luerssen, which may divest its military shipyards; the Luerssen family's approval is required and no agreement has been reached yet.
- Rheinmetall is part of a joint venture with Leonardo SpA bidding for Iveco Group’s defense unit, though their offer is reportedly the lowest; political considerations may favor their bid to keep the business in Italian hands, with a decision pending.
Valuation Changes
Summary of Valuation Changes for Rheinmetall
- The Consensus Analyst Price Target remained effectively unchanged, at €2102.
- The Discount Rate for Rheinmetall remained effectively unchanged, at 5.52%.
- The Net Profit Margin for Rheinmetall remained effectively unchanged, at 12.68%.
Disclaimer
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