Rheinmetall Holds Jefferies Backing as Satellite Timetable Slips and Kassel Deal Takes Shape
Published on 10/08/2026 at 05:20 | Editorial boerse-global.de
Rheinmetall shares came under pressure in a broadly weaker European defense sector on Wednesday, closing down 2.8% at EUR 926.40. The decline followed a soft session for European defense names the previous day, when selling hit the sector without any clear news catalyst even as the wider market traded higher. Higher oil prices and rising bond yields dampened risk appetite across European equities, which retreated after three consecutive winning sessions.
Jefferies Sticks With Buy Despite Satellite Delay
Against that softer tape, Jefferies reaffirmed its "Buy" rating on the German defense group. Analyst Chloe Lemarie pointed to a delayed start to satellite production relative to the original schedule, while stressing that capacity conversion at the Neuss site is progressing at a comparatively brisk pace.
The space segment notched an operational milestone in early October. On October 1, the first satellite developed in partnership with Argotec was successfully placed into orbit aboard a SpaceX Falcon-9 rocket. At Neuss, Rheinmetall ICEYE Space Solutions bundles manufacturing, integration, testing and quality assurance for SAR reconnaissance satellites. The Bundeswehr gains direct access to several exclusively reserved systems that it can commission on its own authority.
Kassel Locomotive Plant and Australian Vehicle Program
On the industrial front, Rheinmetall and Alstom agreed on the key parameters for the takeover of Alstom's locomotive plant in Kassel. Roughly 750 employees work at the site in northern Hesse, though the two companies have yet to sign a binding purchase agreement.
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Rheinmetall also announced a collaboration with Breaker to integrate human-machine teaming into armored vehicles. As a concrete application, the company cited the ongoing delivery of 211 Boxer CRV vehicles under Australia's LAND400 Phase 2 program.
Deutsche Bank Sees More Than 40% Revenue Growth
Market watchers continue to see substantial growth drivers for the current fiscal year. Deutsche Bank Research reiterated its buy recommendation with a price target of EUR 1,800. Ahead of the third-quarter report due on November 5, the bank forecasts revenue growth of more than 40%, with the Bundeswehr's "Arminius" program flagged as a key driver of future business.
Management has signaled confidence through purchases of its own stock. CEO Armin Papperger acquired a total of 525 Rheinmetall shares in two transactions on September 29 for just under EUR 500,000. Days later, the Sara Georgi Foundation, affiliated with supervisory board member Andreas Georgi, reported buying shares worth around EUR 238,000.
After the recent pullback, the stock trades just 2.7% above its 52-week low of EUR 902.50. Until the quarterly figures land on November 5, sentiment across the European defense sector is likely to set the tone for the share price.
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