JPMorgan Leads Analyst Chorus on Rheinmetall Shares (ETR: RHM)

Rheinmetall (ETR: RHM), the German defense and automotive powerhouse, continues to capture the attention of investors and analysts alike as escalating geopolitical tensions fuel unprecedented growth in the European defense sector.

Rheinmetall's share price closed the week at €1,749,50, marking a 2.82% daily gain, yet has seen continued bullish sentiment, spearheaded by JPMorgan's recent price target upgrade. While the past month has seen a slight dip of 3%, the stock's staggering 189% gain since the start of 2025 really underscores the transformative shift in market perception. This surge reflects the company's pivotal role in bolstering European defense capabilities.

JPMorgan's analysts have raised their price target for Rheinmetall from €2,100 to €2,250, reaffirming an “Overweight” rating. The investment bank is projecting an impressive average organic sales growth of 25% for Rheinmetall between 2025 and 2030, prompting a significant upward revision of earnings per share (EPS) estimates for the same period. JPMorgan is not alone in its positive assessment.

Deutsche Bank recently increased its price target to €1,950, citing Germany's commitment to raising defense spending to 3.5% of GDP by 2029. This commitment provides long-term visibility for Rheinmetall, distinguishing it from its peers.

The consensus among analysts is that Rheinmetall is ideally positioned to capitalise on the escalating demand for defense equipment and services. The company's robust order book, coupled with its capacity expansion initiatives, provides a solid foundation for sustained growth. Rheinmetall's ability to scale up production effectively and manage supply chain bottlenecks has further bolstered investor confidence, as highlighted by Deutsche Bank earlier in the year.

Looking ahead, the market consensus points to continued strong organic sales growth for Rheinmetall in the coming quarters and years. JPMorgan's forecast of 25% average organic sales growth through 2030 underscores the company's exceptional growth trajectory. The most bullish analyst target currently stands at €2,300, suggesting that significant upside potential remains.

While the all-time high of €1,942.50, reached early in June, represents a near-term hurdle, analysts believe that Rheinmetall's strong fundamentals and favourable industry dynamics will ultimately propel the stock to new heights.