UBS note24 Aug 2023 19:32
UBS’ base case is for shares to reach 350p, an increase of 175% on its previous target of 200p and more than double where Rolls stood before July’s big upgrade to guidance.
In its upside scenario, where Rolls delivers 2026 margins on a par with industry rival Safran SAF0.97%, UBS sees fair value at 600p. Noting that the risks and rewards are high, the downside scenario is 100p if the recent improvements prove to be unsustainable.
The bullish note today helped to put Rolls back among the biggest FTSE 100 risers, with the widely held stock peaking at 207.3p and reaching midday 3.8p higher at 205.6p. The shares were 80p after August 2022’s interim results.