Rheinmetall sees record order backlog as share price remains pressured

Rheinmetall reported a substantial buildup of defence contracts following the Eurosatory exhibition, indicating strong long‑term demand for ammunition, air‑defence and unmanned systems. Analysts note that the order surge could translate into higher revenues, but the market has kept the stock in a sharp correction, trading about 40 % below its all‑time high and hovering near €1,177 after a modest 2 % decline.

Despite the positive order flow, investors remain wary of the company's ability to scale production, manage supply‑chain constraints and convert the backlog into earnings. An analyst from Oddo BHF lowered the target price to €1,670 but maintained an “Outperform” rating, highlighting the stock’s discount relative to peers and its growth potential to 2030. Broader sector sentiment was also dampened by geopolitical developments, including stalled talks on a US‑Iran ceasefire, which weighed on defence shares overall.