Deutsche Bank repeated its 'buy' advice for shares in Rolls-Royce Holdings PLC's (LSE:RR.) after the aero-engines giant weighed in with stronger-than-expected guidance with its prelims issued on Thursday.
The bank highlighted the company’s ambitious 2028 targets, which also exceeded market expectations.
Deutsche noted that Rolls-Royce delivered a strong 2024 performance, with revenue up 17% to £17.8bn, ahead of consensus.
Operating profit reached £2.46bn, 8% above forecasts, driven by a 24% surge in Civil Aerospace revenue to £9bn. Margins improved to 16.6%, helped by £235m in net contractual margin gains.
With a £475m net cash position, Rolls-Royce announced a £1bn share buyback. Despite shares trading above Deutsche’s price target, the bank remains bullish on the company’s long-term growth prospects.
In afternoon trading, the shares were up 2.3% at 750.6p.