08:03 AM EDT, 08/11/2026 (MT Newswires) -- RBC Capital Markets commenced its coverage of Rheinmetall (RHM.F) with an outperform rating and a price target of 1,600 euros as part of its wider European Defence Primes sector launch. "A 35% EBITA CAGR to 2030E (RBC Euro Defence average 16%) reflects Rheinmetall's attractive exposure to key European re-armament themes, alongside strong geographic positioning. Growing FCF also adds M&A optionality (up to 57% 2030E EBITA upside)," analysts said Tuesday. "While some risk persists, we estimate that the current share price implies only 50% of 2026-30E EBITA growth is realised." The German arms maker is projected to see an organic sales compound annual growth rate of 30% over the 2025 to 2030 period, largely driven by its core land platform and munitions segments that account for 83% of sales. The research firm views Rheinmetall as having "the most supportive" geographic mix in its coverage given the company's high exposure to Germany, which is ramping up defense spending. RBC also expects to see growth contributions from the company's innovative segments, such as air defense, drones and missiles.

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