Mwb Lowers Rating, Price Target for Rheinmetall Amid FY26 Guidance, Capex Cuts

12:17 PM EDT, 08/06/2026 (MT Newswires) -- Mwb Research downgraded its rating on Rheinmetall (RHM.F) to sell from hold as it took into account the German arms maker's reduced full-year 2026 sales and backlog targets and capital expenditures. "Rheinmetall confirmed a strong Q2 on the P&L, with sales up 69% and the operating result up 115% at a 17.1% margin which was already known, but the release was dominated by two negatives. FY26 sales guidance was cut by EUR 300m on the F126 cancellation, as we had expected, and capex was reset from 16% of sales at the CMD to 8% to 9%. In our view it is that capex cut, not operations, that keeps the above 40% cash conversion target reachable after an H1 OFCF outflow of EUR 1.6bn which massively missed the consensus," analysts said Thursday, slashing the price target to 1,050 euros from 1,150 euros. "Our lower 2026 sales and capex assumptions were already on point. We also cut sales for 2028+ on shifting German procurement priorities, on which an update will follow in the next weeks, which drive the majority of Rheinmetall's business." The research firm trimmed its 2028 sales estimate by 0.7%, while the EBIT and EPS projections were both cut by 2.8%.