Positive Outlook and Buy Rating for Rolls-Royce Holdings Amid Strong Growth and Strategic Mitigations

Jefferies analyst Chloe Lemaire has maintained their bullish stance on RYCEF stock, giving a Buy rating yesterday.

Chloe Lemaire’s rating is based on several positive indicators for Rolls-Royce Holdings. The company has reported a strong start to the year, with notable growth in aftermarket revenue within its Civil Aerospace division and robust demand across its defense portfolio. Additionally, the Power Systems segment has shown significant revenue growth, with a book-to-bill ratio of 1.5x.
Despite the uncertainty introduced by tariffs, Rolls-Royce is confident in its ability to mitigate these impacts through strategic actions. The company has also made progress in its engine programs, with large engine flight hours exceeding pre-pandemic levels and advancements in the Trent 1000 engine’s durability improvements. Furthermore, the ongoing share buyback program demonstrates a commitment to returning value to shareholders. These factors collectively suggest a positive outlook for the company, justifying the Buy rating.

In another report released yesterday, CFRA also upgraded the stock to a Buy with a £9.00 price target.

Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RYCEF in relation to earlier this year.