Mwb: Rheinmetall Not Facing Near, Medium-term Risk from AfD's Victory in German State Election

11:28 AM EDT, 09/07/2026 (MT Newswires) -- Mwb Research does not expect Rheinmetall (RHM.F) to experience any near- or medium-term impact from political party AfD's recent state election win in Saxony-Anhalt, Germany, although it presents a potential risk for the defense sector over the long term. "The AfD's landslide victory in Saxony Anhalt could create long-term political risk for German defense spending, but no near or mid-term impact on Rheinmetall. Defense procurement remains a federal competence and the AfD currently has no influence through either the federal government or Bundesrat. Longer term, however, its opposition to Ukraine aid, sanctions on Russia and debt financed defense spending could imply a tighter spending path if its federal influence rises (The AfD polls ~28% federally and the next Bundestag election is in 2029)," analysts said Monday. "For now, we see the election as headline risk rather than an order intake issue." The research firm views the Arminius contract as "the more important news," identifying it as a key catalyst for the German arms maker over the near term, with mwb noting that "valuation is now fair and Arminius cash could carry the 2026 CCR." The price target was maintained at 1,050 euros, with a hold rating on the stock.