JPMorgan Trims Renk Target to €50 as a New Finance Chief Prepares to Take Over

JPMorgan has cut its price target on Renk Group from €62 to €50, citing a slower ramp-up of German armoured-vehicle programmes and a dimmer outlook for the company's industrial business. The rating stays at "Overweight," and the revision — dated 21 October — lowers earnings estimates across 2027 through 2030.

The trimmed forecasts landed well before the defence contractor's latest set of numbers, which arrived on 5 November and gave the bulls something to work with. DZ Bank reaffirmed its buy recommendation that same day and held its fair value at €56.

Orders running well ahead of revenue

For the first nine months of 2026, Renk booked incoming orders of €1.66bn, up 33.6% year on year. Revenue advanced 5.8% to €982.0m over the same stretch, meaning the order book is filling roughly six times faster than the top line. The backlog now stands at €7.6bn. Adjusted EBIT came in at €158.8m.

Management's guidance for the full year, covering continuing operations only, points to revenue of about €1.4bn and adjusted EBIT of between €240m and €255m.

The equity changed hands at €33.09 on the day before the results, a gain of 1.3%, though the seven-day view shows a 4.9% decline.

A change at the finance helm

Separately, the supervisory board has appointed Jurate Keblyte as chief financial officer effective March 2027. Anja Mänz-Siebje will not extend her contract and will hand over the finance brief at the end of the first quarter of 2027, fixing the timetable for the transition at the top of the finance function.

Huddersfield joins the fold

Renk has also completed its acquisition of David Brown Defence from Stellex Capital Management, adding the British site in Huddersfield to the group. The unit, now trading as Renk UK Huddersfield, is earmarked as a centre of competence for submarine propulsion systems.