Rheinmetall's Factory Acceptance Test Clears Infantry Simulator as Berenberg Keeps €1,600 Target
Published on 09/28/2026 at 12:41 | Editorial boerse-global.de
Rheinmetall Electronics has wrapped up the factory acceptance test for its AGSW training system, a simulator built for the Schwerer Waffenträger Infanterie. The first unit is due to reach the infantry school this autumn, with five systems scheduled for handover by mid-2027. It is a modest milestone next to the group's headline armor programs, yet it underscores how the Düsseldorf-based defense contractor keeps stacking up operational wins even as its share price struggles.
The stock closed Friday at €986.60, down just under 1% on the day, leaving it 36% weaker since the start of the year. Monday's session saw the shares at €983.20, off 0.2%. Investors have spent months digesting the fallout from cancelled prestige procurement efforts, particularly on the maritime side, and management is now working hard to rebuild confidence through its core land business.
Berenberg Sticks With Buy, €1,600 Price Target
Analyst Chris Armstrong at Berenberg left his "Buy" rating on Rheinmetall untouched on Friday, keeping a €1,600 price target. His case rests on positive economic signals stemming from fiscal policy impulses and rising exports. The broker also named Rheinmetall alongside RENK and OHB as its preferred picks in the aerospace, space and defense space.
Attention among market participants is shifting toward pending large vehicle orders and the accelerated expansion of ammunition output. Despite the recent setback, the order backlog had grown to more than €80 billion by the mid-year mark. CEO Armin Papperger is targeting a billion-euro compensation deal before year-end, with the Arminius wheeled armored vehicle program for the Bundeswehr at the center of that effort. That contract could more than offset the operational gap left by the scrapped naval order.
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Firepower Project to Double Propellant Capacity
Alongside the vehicle business, Rheinmetall is pushing ahead with its ammunition division. Through subsidiary Nitrochemie, the company is running an expansion project called Firepower, aimed at more than doubling output of propellant powder and modular charges within the next 24 months. By 2030, Rheinmetall is targeting annual capacity of 20,000 tons of powder.
Roughly €250 million is earmarked for the Bavarian site in Aschau alone, with additional funds flowing to production facilities in Switzerland and Spain. The build-out is meant to lock in supply for persistently strong demand for artillery and tank ammunition.
Drone Deliveries, Artillery Order and a Customs Contract
On Wednesday, Stark Defence announced the imminent start of first combat drone deliveries to the Bundeswehr, according to media reports. The initial partial delivery carries a total value of €275 million and falls under an agreement worth €2.9 billion overall. Rheinmetall is named in those reports as a supplier on a billion-euro contract, though its specific financial share in the drone program remains unquantified.
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Roughly two weeks earlier, Rheinmetall booked an order from an international customer for a five-digit number of 155-millimeter artillery shells. That deal sits in the low triple-digit million-euro range, with delivery scheduled for 2027.
Separately, the company said Wednesday that it received a multi-year framework agreement from the Generalzolldirektion covering maintenance, repair and emergency work on four LNG-powered customs vessels. Rheinmetall's naval division thus keeps broadening its steady service business alongside the large defense projects.
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