Rolls-Royce Holdings PLC (LSE:RR.) is at risk of running out of steam, that’s according to Panmure Liberum (and Agency Partners), which see a tempered price target for the British engineer.
Having previously seen Rolls-Royce as a ‘Buy’, the current rating is a ‘Hold’.
In a collaborative piece of research, the broker cautioned that the current share price is presently close to its projected 2030 peak.
“There is not much left to play for,” the note claimed.
Analysts point out that civil aerospace remains cyclical, typically moving from trough to peak and back over a decade, and the current run since 2020 is already long by historical standards.
A new one-year target is pitched at 560p, up from 550p, and its three-year target is 810p, slightly down from 820p.
The note raised profit and cashflow forecasts following continued operational gains, particularly improved engine reliability, lower overhaul costs and a reduced proportion of loss-making new engine sales.
They also pushed back the expected earnings peak from 2028 to 2030.