Berenberg Downgrades Rheinmetall to Hold on Medium-term Growth Uncertainty

07:34 AM EDT, 10/09/2026 (MT Newswires) -- Berenberg downgraded Rheinmetall (RHM.F) to hold from buy, as analysts noted uncertainty over the company's growth outlook after 2030 as major European contracts reach a "steady state." "We have revamped our bottom-up model of 417 total contracts and order opportunities ... Our model indicates that significant additional contract awards beyond what we estimate in our pipeline are required for sustainable growth beyond 2030 as major European contracts reach a steady state. The underperformance of the shares ytd indicates that this is partly priced in, but it may well weigh on sentiment and earnings momentum, in our view," analysts said in a Friday note. As such, Berenberg lowered its 2030 revenue and EPS forecasts by 6% and 8%, respectively. The stock's price target was also reduced to 1,020 euros from 1,600 euros. "The uncertainty over the level of growth after 2030 may limit the re-rating potential of the shares. Visibility after 2030 is a core determinant of defence sector multiples, in our view," analysts added.