Update shared on19 Sep 2025
Fair value Increased 1.03%Analysts have raised their price target for Rheinmetall to €2124, citing the company's leading role in Europe's historic defense rearmament, growing order visibility, and accelerated organic sales growth forecasts through 2030.
Analyst Commentary
- Bullish analysts highlight Rheinmetall's position at the forefront of a historic rearmament cycle in Europe, marking the largest defense build-up since the Cold War.
- Increasing order book visibility and strong exposure to Germany support confidence in Rheinmetall’s medium-term outlook.
- Analysts raise organic sales growth forecasts, projecting roughly 25% annual growth through 2025-2030, underpinning upward revisions to EPS estimates.
- Rheinmetall is being identified as a top pick among European defense names due to its scale and earnings momentum, particularly by major institutions.
- While the defense sector's outlook is constructive, valuation caution remains, prompting selective conviction among analysts despite generally positive sentiment.
What's in the News
- Rheinmetall plans to sell its civilian businesses in early 2026 and transform into a "one-stop-shop" for land, sea, and air defence, including entering the shipbuilding business.
- The company is considering acquiring German shipbuilder Naval Vessels Luerssen as part of its naval sector expansion, pending approval from the Luerssen family.
- Rheinmetall is participating in a joint bid with Leonardo to acquire Iveco Group's defense unit, although their offer is the lowest among bidders.
Valuation Changes
Summary of Valuation Changes for Rheinmetall
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from €2102 to €2124.
- The Future P/E for Rheinmetall remained effectively unchanged, moving only marginally from 39.04x to 39.51x.
- The Discount Rate for Rheinmetall remained effectively unchanged, moving only marginally from 5.52% to 5.55%.
Disclaimer
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