Rolls-Royce Holdings (GB:RR) is a global engineering company focused on the production of engines and power systems specifically designed for the aerospace and defense industries.
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In the last six months, the company’s stock has soared by more than 70%, grabbing headlines. The revival of the global airline industry, higher defense spending, and new management has really worked well for the company.
Even though analysts forecast high aircraft orders for the company, they are also cautious about the economic struggles globally. Higher inflation, rising rates, and supply chain issues continue to be headwinds for the stock.
Analysts’ Opinion
The stock has generated mixed opinions among analysts, and there has been considerable activity over the past 15 days.
Six days ago, Ross Law from Barclays initiated his Hold rating on the stock. His price target of 166.0p indicates a growth rate of 9% in the stock.
On the same day, Barclays’ analyst Charlotte Keyworth confirmed her Hold rating on the stock, predicting an upside of 2.3%.
Jefferies analyst Chloe Lemaire is the most bullish on the stock and expects it to grow by 37%. He confirmed his Buy rating on the stock 12 days ago.
On the flip side, J.P. Morgan analyst David Perry is bearish on the stock and anticipates a 41% downside in the share price. 10 days ago, he reiterated his Sell rating on the stock.
Rolls-Royce Stock Forecast
According to TipRanks, RR stock has a Hold rating based on two Buy, three Hold, and one Sell recommendations.
The average target price of 166.09p indicates a potential upside of 8.6% based on the current trading level.
Ending Notes
As the share price of the company demonstrates signs of resilience by surpassing its previous highs, recent analysis suggests that the stock may be gearing up for a substantial upward trajectory in the coming days.
However, few analysts believe that despite the positive upswing, the company continues to incur financial losses and has a huge pile of debt. Also, with dividends not in the picture, achieving a new high in the share price could be a distant possibility.
