Rheinmetall shares fluctuate near 1,000 Euros amid new defense orders

Rheinmetall shares have seen recent volatility, trading around the 1,000 Euro mark. Despite a period of decline following a mid-summer recovery, the stock has recently shown upward movement, outperforming the DAX in certain sessions.

The company has secured significant new orders, including a contract worth several hundred million Euros for a five-digit quantity of 155mm artillery shells, with production scheduled to conclude by late 2027. Additionally, American Rheinmetall is supplying twelve Mission Master unmanned vehicles to the US Marine Corps, highlighting sustained global demand for munitions and autonomous systems.

Rheinmetall aims to expand its production capacity to reach an annual output of approximately 1.5 million artillery shells by 2030. However, JPMorgan has placed the company on its ‘Negative Catalyst Watch’ with a ‘Neutral’ rating, expressing concerns that the shift toward new business sectors like drones and digital systems could potentially impact profit margins.