12:25 PM EDT, 05/15/2026 (MT Newswires) -- Berenberg lowered Rheinmetall's (RHM.F) price target to 1,750 euros from 2,100 euros to reflect its lower estimates and the de-rating for the aerospace and defense sector, but expressed optimism over the company's revenue visibility.

"We have reduced our expectation regarding the size of the German Boxer Arminius vehicle contract, which the company expects to receive in H226. We now model that Germany will order 3,000 Boxer vehicles worth EUR23bn to Rheinmetall, versus EUR32bn for 3,800 vehicles,"analysts said in a note published Friday. "This follows the CEO indicating that the number of vehicles was still being negotiated, but he still expects 'some thousand'."

Consequently, the adjusted EPS estimate for 2026 was cut by 1.4%, while the forecasts for 2027 and 2028 were respectively reduced by 3.5% and 8.3%. For 2030, the EPS projection was trimmed by 2%.

Despite this, the research firm expects the German arms manufacturer's revenue visibility to "materially"improve by the end of 2026, with revenue under contract potentially rising to 72% in 2027 and 53% in 2028.

"This assumes that all existing framework contracts will be converted to firm orders and that defence orders are received in line with company guidance ... The sell-off since the Q1 release offers an attractive entry point, in our view, with Rheinmetall's shares trading on 20x 2027 P/E for a 31% EPS three-year CAGR,"analysts noted, leaving the buy recommendation on the stock unchanged.