Rheinmetall's 2Q26 update remains fundamentally positive despite the F126 cancellation, with the firm maintaining its overweight rating and €1,750 price target. The company continues to show strong order momentum and revenue growth despite the potential €300m naval headwind in 2026.
Key Takeaways
- 1.Management reiterated a >60% year-on-year Q2 revenue growth target, which is seen as reassuring for near-term trading.
- 2.The F126 cancellation introduces a potential revenue headwind of up to €300m in FY26, though limited earnings downside is expected.
- 3.Revised Q2 nomination guidance of 'low double-digit €bn' is interpreted as stronger underlying order momentum than previously anticipated.
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- Valuation Methodology and Risks
- Disclosure Section
- Analyst Certification
- Global Research Conflict Management Policy
- Important Regulatory Disclosures on Subject Companies
- STOCK RATINGS
- Global Stock Ratings Distribution
- Analyst Stock Ratings
- Analyst Industry Views
- Important Disclosures for Morgan Stanley Smith Barney LLC Customers
- Other Important Disclosures
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Authors
Marie-Ange RiggioRoss Law, CFALeonore Pele
Securities
RHMG
Themes
Contract Cancellation ImpactDefense Spending
Regions
EuropeGermany