BNP Paribas Exane today raised its price target for $RHM (-3,99 %)
significantly from € 1,500 to € 2,300 and and has issued an "Outperform" rating was reiterated. The analysts see the company as a leading systems integrator in the defense sector with strong margins - between 15% and 30%, depending on the product.
📈 Growth & order backlog:
- Forecasted sales growth (CAGR) >25% from 2024 to 2027
- Order backlog: already € 63 billion in Q1 2025 - could rise to over to over € 90 billion by the end of the year
- Potential due to: high success rate in Europe, US vehicle programs, market consolidation, exit from Power Systems and possible distributions to shareholders
💹 Despite the massive share price increase (approx. +200% YTD, tenfold increase since the start of the war in Ukraine), analysts consider the valuation to be reasonable - with an EV/EBIT of 26x for 2026 and 19x for 2027.
📊 In addition, EBITA growth of 30% annually between 2025 and 2030.
Conclusion: The analysts are convinced of further upside potential - driven by rising defense spending, M&A activities and new partnerships. Rheinmetall remains a hot candidate in the defense sector! 🔥💰
