RHM shares collapsed on Friday following a 20% cut to its former order intake guidance for FY22, while other headline figures were widely in line. Even when consider the typical bullish tone in communication by mgmt, we believe the new guide as far more substantiated than before, and thus we upgrade RHM to Outperform from Neutral. We believe expectation has been reset (Our 22-24e EBIT is only 4% below consensus), while the risk reward looks compelling after the recent sell-off, which led to 11x/9x EV/EBIT 22/23e. We await further clarity with the CMD on 15/16 Sept. Commentary in the call points to improved robustness of new guidance framework Looking through the announced cut to expected FY22 orders, the conference call reassured us that the revised outlook is based on more substantiated discussions and not a risk-weighted pipeline. What is more, the opportunities beyond the EUR 15bn backlog at Defence (vs. guided sales of EUR ~4.5bn/5.5bn in 2022/23e) remain substantial, especially in the VS segment, which is using an ever rising share of solutions from the ES and WA divisions, suggesting higher value creation and thus higher margin. Besides, the prepayment profile of its German lead customer is set to improve, leaving sluggish progress around the envisaged portfolio changes in the Civil Business as the only negative. Solid Q2, fine-tuned EBIT 2022-24e signals limited downside risk to consensus Beyond temporarily soft orders, both Q2 EBIT (the 3% miss was driven by Covid-19 lockdowns in China) and FCF look solid, the latter on good NWC control. We make minor changes to EBIT 2022/23e (lower volume is widely offset by better margins), but reflect improved defence visibility thereafter for a ~5% uplift as of 2024e. Our new adj. EBIT 2023/24e sits only 4% below consensus, indicating limited downside risk from current level. Upgrade to OP (new TP EUR 212) on high visibility and fundamental appeal While the ~20% cut to the FY22 defence order...