Morgan Stanley | The company has announced the acquisition of Loc Performance (US vehicle supplier) for an EV of $950m. With less than 5% of sales coming from the US, Marie-Ange Riggio (analyst) sees the move as a strategic expansion to add exposure to a larger and more stable market, thus reinforcing the company’s long-term investment thesis, as it would increase production capacity in the US, opening the door to +$60bn of orders from the US military.
In addition, the increased US presence would also reduce the impact of the US elections. With the acquisition, the company’s leverage would increase to 1.6x, which would still leave $2bn in M&A to reach the 3.0x limit. In any case, Marie-Ange notes that the deal is still awaiting regulatory approval. At 3.1x EV/EBITDA 2026 (20% discount vs sector). Rheinmetall continues to offer an attractive entry point, so the analyst reiterates her Overweight (OW).
