Analyst Chloe Lemaire from Jefferies maintained a Buy rating on Rheinmetall and keeping the price target at €1,880.00.
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Chloe Lemaire’s rating is based on several key factors influencing Rheinmetall’s performance. Despite a slower quarter due to a pull-forward of €140 million into Q1 and a €200 million headwind from the Murcia facility, there is an expectation of recovery in Q3. The company has also experienced limited order intake due to the government transition in Germany, which is anticipated to stabilize.
Furthermore, the guidance update towards the timing of the Capital Markets Day suggests a strategic approach to managing these challenges. The forecasted sales growth of 19% in Q2 and a 10% increase in EBIT demonstrate a positive outlook for the company’s financial health. These elements combined provide a strong basis for Chloe Lemaire’s Buy rating on Rheinmetall’s stock.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a €2,250.00 price target.