Taken from Todays' Daily Mail8 Aug 2023 06:57
Rolls-Royce shares rally as jet engine-maker's turnaround plan gets the thumbs up from investors
"Rolls-Royce shares rose as the jet engine maker’s turnaround plan received a wave of support from the City. Analysts said last week’s strong set of results were driven by a recovery in long-haul flying, rising global defence spending and price increases on its products and services.
As a result, JP Morgan upgraded its rating on the stock to ‘neutral’ from ‘underweight’ and hiked the target price to 235p from 90p.
Bernstein also lifted the target price to 220p from 168p.
Shares, which have more than doubled so far this year, revved higher by 1.5 per cent, or 3p, to 209.5p.
On a roll: Rolls Royce shares, which have more than doubled so far this year, revved higher by 1.5%, or 3p, to 209.5p JP Morgan said Rolls has significantly beaten expectations in two consecutive set of results. The investment bank also highlighted comments from chief executive Tufan Erginbilgic, who told investors in February that Rolls was failing to charge enough for its products.
JP Morgan said the company’s pricing on its servicing agreements had been far too low for it to generate good returns. Bernstein echoed a similar sentiment, citing improved profitability in the group’s civil aerospace division. It also said that attention will now turn towards the end of November, when the group is expected to set out its medium-term targets". END
In my opinion, there could be another +20% to be had here, before the year end. Well ahead of my expected £2.50p by next Spring.
An Excellent investment opportunity remains here. . . .
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