FRANKFURT (dpa-AFX) - Rheinmetall shareholders are bracing for a bleak end to the week following a wave of analyst criticism. After Thursday's losses, the psychological 1,300 euro threshold is back in focus this Friday. On the Tradegate trading platform, shares of the defense contractor slid 3.6 percent to nearly 1,293 euros. In primary trading, this would represent their lowest level in thirteen months.
Of particular weight is the shift by JPMorgan's David Perry, previously a staunch bull, who has lowered his sails and abandoned his 'Outperform' rating. While Perry had previously viewed every pullback as a buying opportunity, he is now stepping to the sidelines. Similarly, Adrien Rabier of Bernstein Research warned investors to prepare for an 'extension of the bear case scenario.' He noted that a trend reversal would require a surge in revenue, which currently remains delayed.
While Rabier maintains a fundamentally optimistic outlook with a price target of 2,050 euros, Perry slashed his target to 1,500 euros. Although both experts remain significantly above current market levels, the cautious tone of their research is proving decisive for sentiment.
Perry sees Rheinmetall struggling to meet its own growth ambitions, noting that the company has missed market expectations in four of the last six months. Consequently, he views downward earnings revisions as more likely than upgrades and has cut his own estimates through 2030 by up to 5 percent. Furthermore, he observed that some investors are beginning to question Rheinmetall's product portfolio. While Perry does not share these specific concerns, he warned they could hinder a re-rating of the stock in the near term./ag/mis/stk
