Rolls-Royce Holdings PLC (LSE:RR.) has received another meaty share price target upgrade, this time from Deutsche Bank, which it suggested might just be the start.
In its 2022 update, Rolls-Royce guided to further improvement in the core civil aero business, coupled with ongoing solid growth at Power and Defence, notes Deutsche Bank, while new boss Tufan Erginbilgic also launched a transformation programme.
“We have raised 2023-2025 sales and operating profit forecasts by an average of 6% and 19% respectively, but do not reflect the impact from the transformation programme on financials yet.”
The encouraging free cash flow numbers are already in the price, Deutsche added, but its target price was lifted to 160p from 136p nonetheless with analysts pointing to the second half of 2023 as the next key catalyst.
Shares were up1.3% to 146.8p.