Rheinmetall is upgraded to a strong buy, driven by robust defense demand and ambitious 2030 growth plans. Rheinmetall is expanding beyond land systems into air, naval, and digital domains, targeting €50 billion in revenue and 20% margins by 2030. Despite recent stock pullback, Rheinmetall offers 49% near-term upside and up to 290% long-term growth if execution meets targets.
EXCLUSIVE: Rheinmetall is looking to tap workers laid off by the car industry as it prepares to quintuple sales by 2030 compared with 2024.
Auterion CEO Lorenz Meier said having German defence player Rheinmetall on board as a "significant" shareholder in the U.S.-based drone software firm would help it grow its order book, adding that it would not lead to a full takeover.
Rheinmetall plans to buy steel mostly in Germany or in Europe in the future, said CEO Armin Papperger on Tuesday after the German defence company unveiled its new midterm targets.
Rheinmetall on Tuesday told investors to expect sales to grow fivefold over the next five years. The company forecast sales of about 50 billion euros ($58 billion) by 2030, up from about 10 billion euros in 2024.
There are challenges for defense companies operating in Europe—the estimated increase in military spending may not materialize for instance. But Europe is playing catch-up on an epic scale.
The manufacture sales increased 13%, a slowdown in momentum due to delays in German government's procurement decisions.
German arms manufacturer Rheinmetall , one of the main beneficiaries of a boost in European defence spending, reported a 20% rise in consolidated sales, to 7.52 billion euros ($8.77 billion), in the first nine months of the year on Thursday.
Lithuania is in talks with German defence conglomerate Rheinmetall for a second investment project, a Lithuanian presidential advisor said on Tuesday.
Rheinmetall plans to build a new ammunition plant in Latvia, the German defence conglomerate said on Thursday, expanding the ability of the Baltic nation bordering Russia to defend itself.
German defence group Rheinmetall said on Sunday it had reached an agreement with the Luerssen Group to acquire the shipyard's military division, Naval Vessels Luerssen, in a move aimed at expanding into naval shipbuilding.
Rheinmetall is strategically positioned to benefit from Europe's urgent need to replenish ammunition and ground vehicles, driven by the ReArm Europe plan. The company's expansion of production capacity and partnerships, notably with Anduril Industries, enhances its competitive edge in scalable, cost-effective weapons. Recent financial results disappointed, but I view the stock's pullback as a buying opportunity, given robust long-term demand and undervaluation by DCF analysis.