On May 19, 2026, Morningstar identified Rheinmetall AG as the most undervalued large European defense stock. Growth drivers remain strong despite missed first-quarter expectations.
Morningstar maintains a €2,380 fair value estimate for the company. This target suggests upside from the May 18 closing price of €1,172.
A substantial order backlog and increased German defense spending support the outlook. Rheinmetall expects high double-digit revenue growth for the foreseeable future.