Stifel Nicolaus analyst Alexander Wahl has maintained their bullish stance on 0NI1 stock, giving a Buy rating on March 7.
Alexander Wahl has given his Buy rating due to a combination of factors influencing Rheinmetall’s performance and future prospects. Despite the company’s 4Q24 results showing revenue slightly below consensus, the overall group adjusted EBIT exceeded expectations, primarily due to strong performance in the Weapon & Ammunition division and a beneficial property sale. This indicates resilience in their core operations despite some setbacks.
Furthermore, Rheinmetall’s outlook for FY25 suggests significant growth in defense revenue, projected between 35-40%, which translates to an overall group revenue increase of 25-30%. Although the guided margin is slightly below consensus due to ramp-up costs, the potential for large order awards related to European rearmament and the possibility of a guidance upgrade based on government negotiations provide a positive outlook. These factors, coupled with a substantial order backlog, underpin Wahl’s optimistic Buy rating for Rheinmetall.
According to TipRanks, Wahl is ranked #410 out of 9347 analysts.
In another report released on March 7, Berenberg Bank also maintained a Buy rating on the stock with a €1,410.00 price target.