RHM.DE Stock Today: February 23 — Luchs 2 Deal Backs 9.5% Rally
Rheinmetall stock rallied over 9.5% this week after a fresh Luchs 2 contract strengthened the order book and visibility. Rheinmetall AG (RHM.DE) closed near €1,743.5, edging toward €1,800, while average analyst targets cluster around €2,170. Friday saw a small dip, but momentum held. With earnings due on 11 March, Swiss investors are weighing backlog conversion, margin traction, and EUR/CHF exposure. We break down what the Luchs 2 deal means, the current valuation, and technical levels driving near-term moves in Rheinmetall stock.
Weekly move and catalyst check
Rheinmetall confirmed a mid three-digit million-euro order to deliver a turret and machine cannon for the Luchs 2 reconnaissance vehicle, reinforcing its land systems backlog and program depth. The announcement improved visibility on 2026–2027 revenues and underpinned risk appetite in Rheinmetall stock. See the company statement for scope and timing details: Rheinmetall liefert Turm und Maschinenkanone für das Spähfahrzeug Luchs 2.
The weekly jump followed steady buying, even with a slight Friday fade. The Rheinmetall share price finished near €1,743.5, within a range of €1,694.5 to €1,748.5. It sits above the 50-day average at €1,693.36 and near the 200-day at €1,735.26, with the upper Bollinger band at €1,871. A sector recap also highlighted strength in the name: Rheinmetall-Aktie: Was für ein Schlag!.
What it means for Swiss portfolios
For Swiss investors, Rheinmetall stock trades in euros, so EUR/CHF adds a currency layer to returns. Liquidity on Xetra is deep, and most Swiss brokers route efficiently. Consider limit orders around key averages to manage slippage. Dividends and any future distributions are euro-denominated, which can slightly affect realised CHF income and portfolio tracking versus Swiss benchmarks.
European defense stocks continue to benefit from multi‑year budget upgrades and replenishment needs. The Luchs 2 contract aligns with that trend by expanding land systems content. For Swiss portfolios seeking defense exposure, concentration risk matters. Blending large primes with niche suppliers can smooth program risk while keeping upside to ongoing European modernization initiatives.
Valuation and expectations
On current figures, Rheinmetall stock trades at a P/E of 92.55 with a price-to-sales near 7.24 and price-to-book around 16.95. Dividend yield stands about 0.47% on €8.10 per share. EPS is €18.8. These metrics imply high growth expectations and justify careful entry planning, especially as the price approaches €1,800 and remains below the €2,008 year high.
The 11 March earnings update is a key catalyst. We will watch order intake, backlog conversion, and margin progression in Vehicle Systems and Weapon and Ammunition. Any commentary on delivery schedules linked to the Luchs 2 contract could guide 2026 revenue cadence. Street targets average about €2,170, so guidance quality may drive the next leg in Rheinmetall stock.
Technical snapshot
Most momentum gauges are constructive. RSI at 54.66 is neutral, while CCI at 120 suggests overbought conditions. MACD has turned more positive with a rising histogram of 7.50. ADX at 24.51 indicates a moderate trend. ATR at 61.81 points to elevated daily swings, so Swiss investors may consider wider stops or staged entries in Rheinmetall stock.
Key support sits near the 50-day moving average at €1,693 and the 200-day at €1,735. Resistance looms at the round €1,800 level and the upper Bollinger band near €1,871, with the year high at €2,008. A decisive close above €1,800 could invite momentum flows, while a drop below €1,690 would question the weekly breakout in Rheinmetall stock.
Final Thoughts
Rheinmetall stock is riding a clear catalyst. The Luchs 2 contract adds backlog depth, and the price is holding above key averages as it tests €1,800. Valuation is rich on P/E, price-to-sales, and price-to-book, so timing and risk control matter for Swiss investors dealing with EUR/CHF exposure. Into the 11 March earnings, prioritize signals on order intake, delivery phasing, and margins across core segments. Near term, watch €1,800 and €1,690 as tactical levels. If guidance supports the average €2,170 target, upside could continue. If not, expect volatility. Keep position sizes disciplined, use limits, and revisit allocations as new contract news emerges.
FAQs
Why did Rheinmetall stock jump this week?
A new Luchs 2 contract in the mid three‑digit million‑euro range improved revenue visibility and boosted confidence in the land systems pipeline. That, plus steady sector flows into European defense stocks, supported a gain of more than 9.5% on the week despite a small dip on Friday.
What is the Luchs 2 contract and why does it matter?
Rheinmetall will deliver a turret and machine cannon for the Luchs 2 reconnaissance vehicle. The deal adds high‑value content and helps smooth future production schedules. It strengthens the backlog, supports cash flow visibility, and can lift operating leverage if execution keeps pace with rising European defense budgets.
Is Rheinmetall stock expensive at current levels?
By traditional metrics, yes. The stock trades around a 92.55 P/E, a price-to-sales near 7.24, and a price-to-book around 16.95, with a dividend yield near 0.47%. These require strong growth delivery. Investors often manage entry with staged buys or on pullbacks to key moving averages.
What should Swiss investors watch next?
Focus on the 11 March earnings for order intake, backlog conversion, and margin trends. Track technical levels around €1,800 and €1,690, and monitor EUR/CHF since the shares trade in euros. New contracts, delivery updates, or guidance shifts could move the Rheinmetall share price quickly.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.