JPM cuts Hensoldt to 'neutral' on delayed growth guidance

Hensoldt AG

12/11/2025 08:52

** JPM downgrades German defence electronics group Hensoldt HAGG.DE to "neutral" from "overweight" with growth "back-end loaded"

** The downgrade follows the company's Capital Markets Day, where it signalled a delay in achieving expected sales growth and margin improvement, prompting JPM to lower its 2025-29 earnings per share estimates

** The broker also cuts its free cash flow forecasts, citing the impact of lower earnings, higher capital expenditure, increased capitalised R&D, and costs to complete its SAP software rollout

** JPM notes that while strong demand for defence products remains, "sales growth and EBITDA margin improvement would both be more back-end loaded than we expected" due to investment needs

** Out of 15 analysts that cover Hensoldt AG, four rate the stock "strong buy" or "buy", ​eight rate "hold" and three rate the stock "strong sell" or "sell" - LSEG data

 (Reporting by Maria Rugamer)

 ((Maria.Rugamer@thomsonreuters.com))