Rheinmetall shares downgraded as earnings misses raise risks
Updated
Updated · Bloomberg · May 8
Rheinmetall shares downgraded as earnings misses raise risks
6 articles · Updated · Bloomberg · May 8
JPMorgan cut the German ammunition and tank maker to neutral on Friday and reduced its price target by almost 30%; the stock fell as much as 6.8%.
The bank said risks now skew toward earnings downgrades rather than upgrades after a run of disappointing financial results, ending nearly four years of recommending the shares as overweight.
Rheinmetall, long seen as Europe’s standout defence stock, has now lost almost 20% this year, highlighting growing investor concern over whether its strong sector position can offset weaker execution.
Why did JPMorgan slash Rheinmetall's target just as the company reaffirmed its strong growth forecast amid a defense boom?
Can Rheinmetall convert its record €73 billion order backlog into profit, or are production bottlenecks an insurmountable hurdle?