Rheinmetall's Factory Floor Keeps Expanding Even as UBS Trims Its Price Target
Published on 10/26/2026 at 15:40 | Editorial boerse-global.de
Rheinmetall is pressing ahead on the industrial front — adding ammunition capacity, winning a shipyard auction and beefing up its credit cushion — while the sell side takes a more measured view of what the stock is worth.
UBS cut its price target on the defence group to EUR 1,360 from EUR 1,600 on 20 October, keeping its "Buy" rating intact. The Swiss bank pointed to Rheinmetall's capital markets day on 26 and 27 November as the next valuation reference point. Bernstein Research, in a note dated the same day, reaffirmed its "Outperform" call with a EUR 1,200 target, leaving both its rating and its target untouched.
The shares closed at EUR 1,014.60 on Friday, below both houses' targets. According to media reports, news of possible Italian orders had failed to spark a lasting turnaround in the stock up to that point. Italian media reported on Thursday on a potential tank order for Rheinmetall's joint venture with Leonardo, with one report putting the possible volume at EUR 3.7 billion. No confirmed order announcement from Rheinmetall accompanied that figure.
Should investors sell immediately? Or is it worth buying Rheinmetall?
Skyranger Timing Under Scrutiny
On the domestic procurement side, Handelsblatt reported on Thursday that the Bundeswehr is to buy 48 GARMR drone-defence systems from rival Diehl as an interim solution, citing delays with Rheinmetall's Skyranger system. Friday media reports suggested the Skyranger timetable could slip by two to three years. The Diehl purchase was described as a planned project, and no corresponding contract has been confirmed.
Shipyard Auction Goes Rheinmetall's Way
On the expansion trail, Rheinmetall said on 19 October that it had prevailed alongside MSC in the auction for Romania's Mangalia shipyard. The purchase price to be paid jointly comes to around EUR 138 million, according to the company. Closing is expected within a few weeks, with the partners planning both civilian and military shipbuilding at the site. The auction win does not yet complete the joint takeover.
Spanish Ammunition Line Up and Running
Rheinmetall Expal Munitions commissioned a medium-calibre production line at its Albacete site on 16 October. The stated annual capacity is around 1.2 million projectiles and roughly 1.8 million cartridge cases; the company also described the facility as having capacity for about three million munitions components a year. Rheinmetall invested around EUR 20 million in the line, and headcount at the site is set to rise from about 210 to roughly 300 — a staffing build-out that remains a further step beyond the plant's already-live operations.
Financing was also addressed. On 8 October the group renewed its syndicated credit facility ahead of schedule and doubled its volume from EUR 750 million to EUR 1.5 billion. Both the renewal and the increase have already been completed, according to the company. Third-quarter figures are scheduled for release on 5 November.
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