06:37 AM EDT, 05/08/2026 (MT Newswires) -- Mwb Research maintained its investment case for Rheinmetall (RHM.F) as it took note of the German defense technology company's first-quarter earnings miss.

"Rheinmetall reported a soft Q1 with revenue of EUR 1,938m and an operating result of EUR 224m, missing consensus by 15% and 14%, respectively, while the margin at 11.6% was the only clean positive. The 4% stock rally remains surprising. Rheinmetall has confirmed its FY26 revenue growth guidance of 40-45%, of which 28-31% are organic. With ~97% backlog coverage, the guidance looks achievable, and Q1 weakness is largely timing-driven. We now include NVL for the first time, adding ~EUR 1.3bn in FY26 revenue and moving our model to the guidance, raising sales but diluting margins and increasing our minorities estimate to 17% from 15%. PT EUR 1,450 and HOLD unchanged. Compelling backlog but limited upside,"the research firm said Thursday.

Analysts added that the risk/reward profile is not "sufficiently skewed"for them to adopt a "more constructive"stance. Mwb also continues to see heightened cyclical and platform-related risks, viewing the company's emphasized expansion of its drone exposure as "negligible."

Against this backdrop, the research firm raised its full-year 2026 sales estimate by 8.2%, and by 8.7% each for both 2027 and 2028.