The shares of defense company Rolls-Royce Holdings (GB:RR) and banking giant NatWest Group (GB:NWG) were in the spotlight in the UK market today. RR stock gained 19% during the day after the company increased guidance numbers for half-yearly and full-year profits. The stock of NatWest Group, on the other hand, went down, following the sudden resignation of its CEO, Alison Rose, amid the bank closure controversy.
On TipRanks, both stocks have been rated as Moderate Buys. NWG shares present a substantial potential of 50%, while analysts are predicting a downside for Rolls-Royce’s stock.
Let’s examine the details.
What happened to NatWest?
NatWest is among the top four banks in the UK. Today, the stock suffered a blow and lost around 4%, after the company’s CEO, Alison Rose, stepped down from her role. The abrupt resignation occurred due to the closure of Nigel Farage’s account with one of the company’s banks, Coutts.
Rose was under pressure to resign from her job after Farage expressed his dissatisfaction to the BBC regarding a report that stated his accounts with Coutts were closed for commercial reasons. Since then, NatWest has been under significant political and media scrutiny.
Paul Thwaite, who is currently leading NWG’s commercial and institutional business, will take up her role in the bank.
Is NatWest a Buy, Sell, or Hold?
According to TipRanks, the NWG stock has a Moderate Buy rating, which is based on eight Buy, three Hold, and one Sell recommendations. The average price forecast is 200p, implying a growth of 57% on the current trading levels.
Rolls-Royce News
Rolls Royce Holdings is a global engineering company that specializes in manufacturing engines and power systems specifically tailored for the aerospace and defense sectors.
Today, the company’s stock surged by almost 20%, hitting its highest point in the last three years. The upward movement happened after the company increased its yearly profit numbers for 2023, as it is expecting half-year earnings to surpass expectations. The company will publish its half-yearly results on August 3.
The company remained optimistic about its numbers, driven by higher military spending and its operational efficiency. Rolls-Royce is capitalizing on a quicker-than-anticipated rebound in flying hours in the aviation industry, which is driving increased demand for profitable aftermarket services. The company revised its profit forecast for 2023 to be in a range of £1.2 billion to £1.4 billion, which marks an increase from its earlier guidance of £800 million to £1 billion.
Analysts are also bullish on the prospects and believe the CEO Tufan Erginbilgic’s turnaround strategy is paying off well.
What is the Future of Rolls-Royce Stock?
Based on four Buy, four Hold, and one Sell recommendations, RR stock has a Moderate Buy rating on TipRanks.
The average price forecast is 163.34p, which is 11.3% lower than the current trading level.
