Lanxess and Rheinmetall face divergent analyst outlooks

Analysts have provided divergent outlooks for major German industrial firms Lanxess and Rheinmetall.

mwb research maintains a ‘Buy’ rating for Lanxess with a price target of 20 euros, suggesting a potential 38 percent increase from recent levels. While the chemical industry faces a weak environment and low capacity utilization, analysts expect significant upside starting in 2027 as demand recovers and cost-cutting measures, including 65 million euros in planned savings for 2026, take effect.

In contrast, Rheinmetall faces conflicting analyst opinions. mwb research downgraded the stock from ‘Hold’ to ‘Sell’ with a lowered price target of 1,050 euros, citing a poor risk-reward ratio and reduced investment quotas. This follows the German government's cancellation of the F126 frigate program, which resulted in the loss of the company's largest contract and approximately 2 billion euros in write-offs. However, Goldman Sachs remains bullish, maintaining a ‘Buy’ rating with a price target of 2,300 euros.