Jefferies Keeps Buy Rating on Rheinmetall Amid Lowered Target Price

Jefferies analyst Chloe Lemarie reaffirmed a "Buy" rating for German defence group Rheinmetall AG, even though the firm cut its 12‑month price target from €2,220 to €1,890. The analyst said the recent doubts about the company's product relevance are overstated and highlighted the firm’s strong position in land‑defence systems such as ammunition, armoured vehicles, artillery and logistics.

The rating rests on sustained demand driven by heightened geopolitical tensions, rising NATO defence budgets and a push for European‑based military production. Jefferies expects robust order intake to be the key catalyst for the stock, while noting execution risks around capacity, supply‑chain stability and margin pressure that prompted the more cautious valuation.

Long‑term growth outlook to 2030 remains positive, with expectations of expanding digitalisation of military platforms and continued investment in air‑defence and drone technologies.