JP Morgan has raised its price target on Rolls-Royce Holdings PLC (LSE:RR.) by 11% to 1,800p, implying around 20% upside, after what it called the most impressive of the engineer's nine consecutive beat-and-raise updates.
Analyst David Perry, who rates the shares overweight, said first-half results published last week came in meaningfully ahead of Bloomberg median consensus.
Rolls-Royce also significantly raised its 2026 guidance for earnings before interest, tax and amortisation and for free cash flow.
It was the ninth successive occasion the company has beaten expectations and lifted guidance since its 2023 full-year results.
Perry singled this one out for two reasons. The first is that beating off a high base is much harder than beating off a low one.
The second is that all three divisions significantly exceeded expectations and now carry a higher earnings outlook.
The broker has lifted its earnings per share forecasts by 19% for 2026, 14% for 2027, and 13%, 13% and 14% for the three years to 2030.
The new December 2027 price target is derived from a sum-of-the-parts valuation, which values each division separately and adds the results together.
The shares rose 1.7% to 1,531.8p.
