Rolls-Royce Holdings PLC (LSE:RR.) racked up a further gain on Friday after expectation-smashing results secured continued backing from analysts.
Panmure Liberum repeated a ‘buy’ rating on the back of Thursday’s results, noting earnings and guidance had trounced its forecasts.
Underlying operating profit had jumped 57% to £2.5 billion on a 17% increase in revenue to £17.85 billion, prompting a £1 billion buyback and return to dividend payments.
Panmure flagged a “very strong” performance over the second half in its civil aerospace and power divisions on contract improvements, but said its defence wing was off.
Guidance for operating profit of £3.6 billion to £3.9 billion by 2028 outdid its forecast by roughly 10%, Panmure added though.
A 550p share price target was also reiterated, with Panmure noting the results should see Rolls-Royce “re-rated to at least match European peers Safran and MTU”.
Shares were up 1.2% at 740.2p on Friday, having soared on Thursday.