German defense stocks Rheinmetall and Renk upgraded to Buy

Deutsche Bank Research lowered its price target for Rheinmetall AG to €1,800 per share from €2,100 but kept a “Buy” rating, citing expected acceleration in revenue growth after the company’s quarterly results and the shift in focus following the German defence ministry’s stop of the F126 frigate programme.

DZ Bank raised Renk to “Buy” with a €64 price target after Renk’s acquisition of DB Defence. Analysts highlighted the added marine‑propulsion capabilities, a broader international customer base and potential margin expansion, while noting a short‑term increase in debt.

Both analysts view the defensive sector upgrades as attractive entry points despite the operational and financial adjustments linked to recent defence programme changes.