Analysts have raised their price targets for Rolls-Royce Holdings due to strong earnings momentum, improving operational performance, margin improvement, and a better outlook for aerospace and defense, resulting in the consensus analyst price target increasing from £7.91 to £8.90.
Analyst Commentary
- Valuation concerns driving downgrades from some analysts after the recent share price rally.
- Bullish analysts raising price targets based on strong earnings momentum and improving operational performance.
- Upgrades reflecting growing confidence in Rolls-Royce’s ability to deliver on cost savings and margin improvement.
- Increasing aftermarket and services revenue contributing to positive outlooks.
- Enhanced outlook for civil aerospace and defense segments fueling optimism among bullish analysts.
What's in the News
- Rolls-Royce is in discussions with Airbus, Boeing, and other potential partners to develop engines for the next generation of narrowbody aircraft, aiming to re-enter this rapidly growing market segment using its Ultrafan turbine technology.
- The company plans to invest an additional $4.1 billion in Ultrafan development, targeting a demonstrator completion in two years.
- Shareholders approved the re-appointment of PricewaterhouseCoopers LLP as auditor at the AGM.
- The company expired its buyback plan on May 1.
Valuation Changes
Summary of Valuation Changes for Rolls-Royce Holdings
- The Consensus Analyst Price Target has significantly risen from £7.91 to £8.90.
- The Discount Rate for Rolls-Royce Holdings has significantly risen from 6.78% to 7.59%.
- The Net Profit Margin for Rolls-Royce Holdings has significantly risen from 10.69% to 11.84%.
Disclaimer
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