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Bernstein analyst Adrien Rabier reaffirmed an Outperform rating on Rheinmetall AG with a price target of EUR 2,000, citing the company's strong position in defense. Rheinmetall has expanded production capabilities significantly, capturing substantial market share in defense equipment, particularly artillery systems.

Revenue grew by 24.6% over the past year, with projected growth of 28% for fiscal 2025. The artillery business is generating EBIT margins above 30%, contributing to overall group margins exceeding the industry standard of 13%.

Bernstein sees potential upside in Rheinmetall's financial projections for 2026 and 2027, supported by recent capacity expansions. The company is transitioning towards long-cycle defense programs while maintaining a diverse portfolio that includes ground vehicles, ships, combat aircraft, and space systems.