Update shared on06 Aug 2025
Fair value Increased 23%Analysts have raised their price target for Rolls-Royce Holdings to £9.97, citing stronger cash flow forecasts, sustained operational improvements, and a more optimistic long-term aerospace outlook.
Analyst Commentary
- Valuation concerns leading to a more cautious outlook after strong share price appreciation.
- Bullish analysts highlight continued operational improvements and margin expansion.
- Upgraded cash flow projections supporting higher price targets.
- Improved outlook for long-term civil aerospace market recovery.
- Confidence in ongoing cost reduction and efficiency initiatives.
What's in the News
- Completed repurchase of 49,137,347 shares (0.59%) for £383 million under its buyback program announced in February 2025.
- Completed repurchase of 71,490 shares (0.000853%) for £0.33 million under its buyback program announced in May 2024.
- Engaged in discussions with potential partners, including Airbus and Boeing, to re-enter the narrowbody aircraft engine market using Ultrafan turbine technology, with plans to invest an additional $4.1 billion and complete a demonstrator in two years.
Valuation Changes
Summary of Valuation Changes for Rolls-Royce Holdings
- The Consensus Analyst Price Target has significantly risen from £8.90 to £9.97.
- The Consensus Revenue Growth forecasts for Rolls-Royce Holdings has significantly risen from 5.7% per annum to 6.3% per annum.
- The Future P/E for Rolls-Royce Holdings has risen from 35.49x to 38.72x.
Disclaimer
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