Deutsche Bank hikes Rolls-Royce price target

25th Jun 2024 12:15

(Sharecast News) - Deutsche Bank hiked its price target on Rolls-Royce to 555p from 465p on Tuesday as it revisited the valuation ahead of first-half results.

The bank said the first-quarter update provided evidence that execution at Rolls-Royce is improving.

"While our 2024-2027 estimates are broadly unchanged, our degree of confidence in the company's ability to deliver on its transformation programme has increased," it said.

"Ahead of the H1 release on 1 August, we adopt a scenario described in a previous note: we move our valuation to 2027e, based on increased confidence in 2027 target attainment."

DB rates the shares at 'buy'.

At 1215 BST, the shares were down 3.8% at 453.40p, taking a hit from the profit warning from Airbus late on Thursday.