Update shared on30 Aug 2025
Fair value Increased 2.14%Analysts have raised their price target for Rolls-Royce Holdings to £11.19, citing improved fundamentals, robust aerospace demand, stronger cash flow, and enhanced profitability, though some caution about valuation after recent gains.
Analyst Commentary
- Bullish analysts have increased price targets based on improving company fundamentals and sustained earnings momentum.
- Upgrades reference robust demand in the aerospace sector supporting Rolls-Royce’s core business.
- Ongoing cost control initiatives and operational efficiencies are seen enhancing profitability projections.
- Some upward revisions attribute optimism to stronger than expected cash flow and strengthening balance sheet.
- Bearish analysts cite valuation concerns following recent share price appreciation, leading to downgraded ratings.
What's in the News
- Rolls-Royce is nearing a deal to transfer nearly £4 billion in UK pension liabilities to Pension Insurance Corporation, which would significantly reduce its balance sheet obligations, though talks may still fall through.
- The company completed a share buyback of 49,137,347 shares (0.59% of shares) for £383 million, as part of the program launched in February 2025.
- For another buyback program announced in May 2024, the company repurchased 71,490 shares (0.000853%) for £0.33 million.
- Rolls-Royce is in discussions with potential partners, including Airbus and Boeing, to re-enter the narrowbody aircraft engine market using Ultrafan turbine technology, planning to invest an additional $4.1 billion in the platform and complete a demonstrator in two years.
Valuation Changes
Summary of Valuation Changes for Rolls-Royce Holdings
- The Consensus Analyst Price Target has risen slightly from £10.95 to £11.19.
- The Future P/E for Rolls-Royce Holdings has risen slightly from 38.23x to 39.14x.
- The Consensus Revenue Growth forecasts for Rolls-Royce Holdings remained effectively unchanged, moving only marginally from 7.1% per annum to 7.2% per annum.
Disclaimer
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