Rheinmetall shares recover despite lowered revenue forecast

Rheinmetall shares have shown signs of recovery, trading at approximately €1,166 to €1,175 following a recent period of volatility. Despite a recent setback, the company's fundamentals remain supported by rising European defense spending and a high order backlog.

However, the company recently lowered its 2026 revenue forecast from a range of €14.0–€14.5 billion to €13.7–€14.2 billion. This adjustment is primarily due to the cancellation of the German F126 frigate program, which is expected to result in a revenue loss of roughly €300 million in the marine segment. Despite this, Rheinmetall maintains its long-term goal of expanding marine segment revenue to €5 billion annually by 2030.

Analyst opinions on the stock remain varied. Goldman Sachs has set a price target of €2,300, while Deutsche Bank targets €1,800. In contrast, JPMorgan has lowered its expectation to €1,350. The current analyst consensus sits at approximately €1,700.