Barclays analyst Afonso Osorio upgraded Rheinmetall AG to Buy from Neutral.
The bank maintained a price target of €2035 for the defense contractor.
An upcoming meeting with the CFO and Head of IR serves as a catalyst to address execution concerns following a first-quarter miss.
Barclays confirmed the structural investment case for the company remains intact.
Rheinmetall is reportedly considering a €500 million senior unsecured notes offering.
The potential sale, cited by unnamed sources, would support ongoing operations and growth.