Rheinmetall’s third-quarter results have highlighted the German defense group’s growth potential, though analysts have pointed out concerns regarding the quality of its earnings and cash flow. Jens-Peter Rieck of Mwb research noted that delays in the Arminius project, which is crucial for Germany’s planned acquisition of Boxer armored wheeled vehicles, have prompted the company to lower its sales and operating margin forecasts for 2026.
“The story hinges on Arminius more than ever,” Rieck stated, underlining the project’s significance to Rheinmetall’s future sales performance. Mwb has assigned a hold rating on Rheinmetall’s stock, with a target price set at 1,050 euros. However, Rieck indicated that the target price would be about 20% lower if not for the expected contributions from the Arminius project.
Following this news, Rheinmetall’s shares saw a decline, dropping 16% to 845.70 euros. The stock has also experienced a substantial year-to-date decrease of 46% as investors react to the company’s revised outlook and ongoing challenges with project timelines.
