Stock Poised for Multi-Bagger Gains? Rheinmetall, OHB, and MustGrow Under the Analyst Microscope

MustGrow: A stock with multi-bagger potential

MustGrow Biologics is emerging as a promising player in the agricultural biotechnology sector. For the first time, GBC AG has published an equity research report quantifying the company’s growth potential. The analysts initiate coverage with a “Buy” recommendation and a price target of EUR 1.66, implying multi-bagger upside from the current share price of approximately EUR 0.225.

MustGrow pursues a hybrid business model combining the commercialization of its proprietary biological crop products with the licensing of its mustard-based technologies to leading agricultural partners. In the short term, the company’s focus is on TerraSante™, a commercially approved biofertility product designed to supply beneficial soil microorganisms with plant-based proteins and carbohydrates, thereby improving nutrient availability and supporting higher crop yields. Initial commercialization is targeting high-value crops such as fruits, vegetables, grapes, tree nuts, and potatoes in the United States. Over the long term, TerraMG™ represents an additional growth opportunity. The pre-registered mustard-derived biocontrol product is being developed as a pre-plant soil treatment to combat soil-borne diseases and plant-parasitic nematodes, although it remains in the regulatory approval and commercial development phase. Internationally, TerraMG’s growth strategy is centered on partnerships with leading agricultural companies. A commercialization and licensing agreement has been established with Bayer for Europe, the Middle East, and Africa, granting the German company exclusive marketing and development rights, while MustGrow participates through upfront payments, potential milestone payments, licensing royalties, and potential product supply revenues. This allows MustGrow to enter international markets without having to build its own capital-intensive regulatory and distribution infrastructure.

According to GBC Research, the market for biological agricultural solutions is growing dynamically. It is driven by regulatory pressure on chemical products, the expansion of organic and regenerative farming methods, and demand for more sustainable solutions for yield and plant health. According to industry forecasts, the global market for biofertilizers is set to grow from USD 1.55 billion in 2025 to USD 5.33 billion in 2035, corresponding to an annual growth rate of 13.1%. For biopesticides and biological crop protection agents, an increase from USD 8.4 billion to USD 26.1 billion is expected over the period from 2025 to 2033, equivalent to 15.3% per year. Particularly in demand are solutions that strengthen soils, improve nutrient efficiency and make crops more resistant to drought, salt stress and disease. North America and Europe remain important sales markets, while China and India are gaining increasing importance in the Asia-Pacific region.

The analysts expect MustGrow to grow strongly in the coming years in this positive market environment. After CAD 4.50 million in fiscal year 2026, revenues are expected to climb to CAD 14.05 million in 2027. In 2028, as much as CAD 31.56 million is then expected to be generated. The drivers are expected to be increasing market penetration of TerraSante™, recurring orders, growing dealer acceptance and additional acreage. The analysts see particularly attractive sales markets in strawberries in California and potatoes in the Pacific Northwest of the USA. In parallel, the gross margin is expected to improve from 23% in 2026 to 35% in 2027 and 48% in 2028. The reason is the rising share of proprietary products, better production terms and increasing economies of scale.

On the earnings side, too, a clear improvement is emerging, according to GBC. Owing to start-up costs, earnings are expected to remain negative in 2026 and 2027. In 2028, an EBITDA of CAD 8.46 million and earnings per share of CAD 0.11 are then expected to be generated. The stock currently trades at around CAD 0.40. The expected operational turnaround rests above all on TerraSante™, while TerraMG™ and the partnership with Bayer open up additional long-term potential. The Bayer cooperation is not yet included in the analysts’ base-case scenario and thus offers further upside potential.

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OHB: Buy the stock now?

Today, the capital increase at OHB comes to an end. In the course of the private placement, the company has already received gross proceeds of around EUR 482 million. In addition, the major shareholder, KKR, sold part of its stake, raising approximately EUR 418 million. With the rights offering to existing minority shareholders, the transaction will conclude tomorrow. The measure had recently weighed heavily on the share price. In mid-May, the stock of Germany’s space hope was still trading above EUR 600. Then came the sell-off to below EUR 300. Is there now an opportunity to buy?

The analysts at NuWays have, in any case, recently confirmed their “Buy” recommendation. The price target was raised from EUR 320 to EUR 340. After the capital increase and the presentation of new mid-term targets, OHB sees itself, according to the analysts, well positioned to benefit from the growing European space and defence market. As an independent German space prime, the company is said to have a strong position in sovereignty-relevant programmes such as military satellite communications, space surveillance and space-based early warning. Tailwind is said to come from rising budgets of ESA, the EU and national defence budgets.

The capital increase is intended to make OHB financially more robust and to provide funds for industrialization, capacity expansion and possible acquisitions. Gross proceeds of around EUR 482 million are said to be already secured, and with full placement they could reach up to EUR 511 million. At the same time, the free float rises significantly, which should improve the stock’s liquidity and its potential index eligibility. Weighing on the figures in the short term are transaction costs, which according to the study could reduce 2026 EBIT by around EUR 5 million. The analysts see share-price fantasy in Rocket Factory Augsburg. A successful maiden flight of the RFA ONE launch vehicle in the summer of 2026 could make the value of the stake more visible.

For 2026, the analysts expect total operating performance to rise to EUR 1.44 billion, up from EUR 1.25 billion in 2025. By 2028, it is expected to climb to EUR 2.41 billion. The growth is expected to be driven in particular by the increasing execution of larger satellite and defence programmes. Adjusted EBITDA is expected to rise from EUR 159.1 million in 2026 to EUR 223.5 million in 2027 and EUR 307.7 million in 2028. For earnings per share, analysts expect an increase from EUR 3.20 to EUR 5.20, then to EUR 7.50. This puts the P/E ratio for 2027 at a sporty 57.7 and for 2028 still at 40. The forecasts assume that OHB wins the expected major contracts, ramps up the projects on schedule and increasingly translates economies of scale into better margins.

Rheinmetall: Frigate Setback Not as Severe as Feared?

The definitive end of the F126 frigate programme temporarily pushed Rheinmetall’s stock below the EUR 1,000 mark and sent a tremor through the entire German defence industry. But the analysts at mwb research give shareholders hope of rising prices. The subsidiary Naval Vessels Lürssen (NVL) had been positioned as a potential problem-solver for the multi-billion-dollar programme. This deprives Rheinmetall of a potential multi-billion contribution to the planned growth of the marine business through 2030.

mwb therefore reduces the long-term revenue assumption for the Naval segment from the previous EUR 5 billion to EUR 3 billion. The previously indicated 15% EBIT margin for the marine segment is also viewed critically. Because of possible underutilization of the shipyards and the integration of NVL, the analysts instead expect a margin of 10% to 12%. They also see risks in a possible shift of defence spending towards air defence, drones and precision munitions, while classic systems such as tanks, artillery or 155mm ammunition could lose momentum.

For the group as a whole, mwb research remains fundamentally positive despite the lower expectations for the marine business. The F126 shortfall is said to be relevant for the targets through 2030, but does not render the overarching rearmament story obsolete, since the marine segment accounts for less than 10% of group revenue.

For 2026, mwb research expects revenue to rise from EUR 9.94 billion to EUR 14.08 billion. For 2027, it is then expected to reach EUR 19.15 billion. For 2028, Rheinmetall is then projected to achieve revenue growth of EUR 24.60 billion. EBITDA is expected to climb from EUR 3.13 billion in 2026 to EUR 4.37 billion in 2027, then to EUR 6.03 billion in 2028. For earnings per share, analysts expect an increase from EUR 34.31 in 2026 to EUR 49.32 in 2027 and finally to EUR 66.86 in 2028. The forecasts continue to reflect strong growth in the core defence-goods business, even if the contributions from the marine area are now set more cautiously.

The price target is reduced from EUR 1,450 to EUR 1,400; however, the “Buy” recommendation remains in place. The analysts consider the sharp price decline exaggerated given the limited share of the affected segment. What will now be decisive is how transparent Rheinmetall communicates its new plans for the marine business.

The financial impact of the frigate disaster at Rheinmetall appears to be manageable. However, the reputational damage must not be disregarded. The stock remains a core holding in the European defence sector. The sector itself, however, is currently not a focus for investors. MustGrow is an interesting growth story. If the growth can be delivered as planned, the stock should soon take off. All the more so as the cooperation with Bayer offers upside potential. OHB was driven by the SpaceX hype. That is now over. With a view to earnings development in the coming years, the stock is no bargain.

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