Rheinmetall's Factory Floor Expands While Analysts Trim Their Targets
Published on 10/26/2026 at 07:50 | Editorial boerse-global.de
Rheinmetall Defence UK cut the ribbon on its "UK Gun Hall" in Telford on Thursday, restoring independent large-calibre weapons manufacturing to British soil, according to the company. The site will turn out 120-mm and 155-mm gun systems.
The British opening is one strand of a broader production push. Rheinmetall Expal Munitions started up a new medium-calibre line in the Spanish town of Albacete on 16 October, a facility the company says is designed for an annual output of roughly 1.2 million projectiles and about 1.8 million cartridge cases. The investment carries a price tag of around EUR 20 million. Rheinmetall puts Albacete's annual capacity at approximately three million munitions components.
Credit Line Doubled Ahead of Schedule
Alongside the plant build-out, the Düsseldorf-based group has doubled its syndicated credit facility to EUR 1.5 billion from EUR 750 million, and did so ahead of schedule.
Not every item on the production agenda is running to plan. Handelsblatt reported Thursday that the Bundeswehr intends to procure 48 GARMR drone-defence systems from Diehl as an interim solution, citing delays with Rheinmetall's Skyranger. The procurement was described as a planned project.
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Two Brokers, Two Targets, One Cautious Tone
On the valuation side, UBS lowered its price target for Rheinmetall on 20 October to EUR 1.360 from EUR 1.600 while keeping its "Buy" rating intact. Analyst Sven Weier pointed to the capital markets day on 26 and 27 November, expecting more conservative corporate targets from management. Bernstein Research, for its part, reaffirmed its "Outperform" rating and EUR 1.200 target on the same day, leaving both the call and the number untouched.
Berenberg had already moved first, downgrading the stock to "Hold" from "Buy" on 9 October and slashing its target to EUR 1.020 from EUR 1.600. Analyst George McWhirter tied the move to uncertainty over medium-term growth prospects, arguing that further expansion beyond 2030 would require a substantially larger order intake.
The shares closed Friday at EUR 1.014,60, sitting below the targets set by both UBS and Bernstein. Media reports of possible Italian orders had so far failed to spark a lasting turnaround in the price.
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Those reports, which surfaced Thursday, concern a potential tank order for Rheinmetall and Leonardo's joint venture. One account put the possible volume at EUR 3.7 billion, though no confirmed order announcement from Rheinmetall accompanied it.
Investors have two dates circled. Third-quarter 2026 results are due on 5 November, with the earnings presentation scheduled the same day. The Hamburg capital markets day follows on 26 and 27 November.
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