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Investing.com - JPMorgan has reiterated its Overweight rating and EUR2,250.00 price target on Rheinmetall (ETR:RHMG) AG (ETR:RHM) (OTC:RNMBY), viewing the recent 8% share price decline as "a very attractive entry point."
The German defense contractor’s stock fell primarily due to reports that Trump and Putin will meet in the coming days, according to JPMorgan’s analysis. The firm stated it does not believe this meeting will affect planned increases in German defense spending.
A secondary factor in the share price drop was Rheinmetall’s Q2 2025 results coming in below consensus expectations, though the company maintained all of its fiscal year 2025 guidance.
JPMorgan expects "very strong news flow for the German defence sector" beginning September 8, 2025, when the German parliament reconvenes after its summer break.
The firm has reduced its 2025-2030 earnings per share estimates by 2-4% annually due to a higher share count following the conversion of a convertible bond, while maintaining its December 2026 price target that suggests 37% upside over the next 18 months.
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