Rheinmetall Sinks Most Since 2022 After Loss of a Long-Time Bull

Rheinmetall AG’s position as the standout European defense stock is looking increasingly vulnerable after a series of disappointing results led a long-time bull to downgrade the shares.

Analysts at JPMorgan Chase & Co. on Friday cut their recommendation to neutral after advising clients for nearly four years to overweight the stock. They also slashed their price target, citing a greater risk of earnings downgrades than upgrades. Shares in the German manufacturer of tanks and ammunition fell 9.2%, their biggest drop since August 2022, extending year-to-date losses to 22%.