Berenberg raises Rheinmetall target price to €1,750 amid defense sector optimism

Private bank Berenberg upgraded Rheinmetall to a "Buy" rating and set a new target price of €1,750 per share, according to analyst George McWhirter. He highlighted the strong visitor numbers at this year’s Eurosatory defence exhibition in Paris, where air‑defence systems and unmanned technologies drew more attention than at the previous fair. McWhirter noted that, despite this interest, European defence‑sector stocks have underperformed since the start of the year, creating a discrepancy between market sentiment and company fundamentals.

The analyst expects upcoming decisions at the NATO summit on 7‑8 July to be a key driver for future order books, which could boost Rheinmetall’s earnings and support the higher price target. Investors are advised to monitor the summit outcomes and potential large‑scale contracts that may affect the broader defence industry.