British aerospace and defence company Rolls Royce (GB:RR) has analysts raving about its solid prospects and asserting a “Strong Buy” consensus rating. In December, several analysts reiterated a Buy rating on RR shares while assigning a lucrative price target on the stock. Analysts are impressed by the turnaround story of the plane engine maker. Following the company’s Capital Markets Day update in November, the RR share price has gained 19.9%.
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Analysts Go Ga-Ga Over RR Stock
On December 8, Deutsche Bank analyst Christophe Menard lifted the price target on RR to 400p (34.8% upside) from 310p while maintaining a Buy rating. The analyst believes that the ongoing geopolitical scenario will continue to aid the defence sector in 2024. Menard is particularly optimistic about Rolls Royce’s robust medium-term outlook and the overall positive visibility for the sector.
Similarly, on December 8, UBS analyst Ian Douglas and on December 11, J.P. Morgan analyst David Perry reiterated their Buy ratings on RR stock and assigned a 400p price target.
The latest to join the bandwagon is Citi analyst Charles Armitage, who raised the price target to 431p (from 294p), implying a 45% upside potential. Armitage also increased his model estimates for earnings per share for both the short and long term. He is particularly bullish about the cash flow generation ability of the FTSE-100 company. RR stock gained 2.3% following Citi’s price target update on December 11.
Is It Good to Invest in Rolls Royce?
Considering the enthusiasm and the solid backing of analysts, Rolls Royce could be a good investment option. Analysts see further upside to the stock despite RR already gaining 200% so far in 2023.
On TipRanks, RR stock commands a Strong Buy consensus rating based on nine Buys versus one Hold rating. The Rolls Royce share price forecast of 358.62p implies 20.8% upside potential from current levels.
Ending Thoughts
Rolls Royce is catching the eye of many analysts with a solid turnaround story in place. The high price target valuation on the stock and the Strong Buy consensus rating make Rolls Royce an attractive investment choice.
