Rolls-Royce Holdings PLC (LSE:RR.) sat at the top of the FTSE 100 risers on Monday as brokers continued to wax lyrical about the firm after last week’s results and seven-pronged transformation programme.
Shares rose a further 5.6% today after soaring over 20% on the day of the release leaving the FTSE 100 engineer up over 45% year to date.
Broker Jefferies increased its price target to 170p from 125p while Bank of America is reported to have lifted its target to 175p from 97p and upgraded its rating to ‘buy’ from ‘underperform’.
Jefferies has a ‘buy’ rating on Rolls. It said new chief executive Tufan Erginbilgic is off to a great start, presenting the first truly solid set of results for the group since the Trent 1000 issues started in 2018.
“The quality of the earnings and free cash flow beat was solid, with lower catch-ups than in H1, and on volumes which remained low.”
It noted guidance also pointed to the group's recovery unfolding a year ahead of expectations while management presentation allayed concerns on risks of a rights issue.
“But it does not end here: an H2 Capital Markets Day could provide further uplift to estimate by providing a path to mid-teens margin for the group,” it suggested.