Metzler Cuts Rheinmetall Price Target, Estimates Amid Increased Execution Risks

08:12 AM EST, 11/06/2026 (MT Newswires) -- Metzler Capital Markets reduced its price target and estimates for Rheinmetall (RHM.F), noting that the German defense group is currently facing increased execution risks related to growth. For the third quarter, Rheinmetall delivered a "very solid" performance, bolstered by double-digit annual topline growth in three of its five divisions and a stronger-than-expected operating margin, the research firm wrote in a Friday note. "Those achievements are overshadowed by another loss of transparency regarding the arrival of the Arminius-order and another delay in product deliveries to a customer which cause a guidance cut of EUR500m on the top-line and 50bps on the bottom-line (new EBIT-margin target 18,5%). Apparently the German government revisits pricing components of RHMs offer under the Arminius-tender which could well trigger price concessions ahead of the final contract assignment early 2027," analysts said. "Our scenario revision largely reflects our expectation of a somewhat smaller size and contribution margin coming from the first lot of the Boxer-order as well as a more conservative approach regarding RHMs further expansion to reflect the increased execution risk to translate prospective orders into firm revenues." Against this backdrop, the price target was reduced to 1,750 euros from 2,180 euros, with an unchanged buy rating on the stock. Metzler also cut its sales forecasts by 6.7% for 2026, 11.4% for 2027 and 10.1% for 2028, alongside lower EPS and EBIT projections.