Rolls-Royce Holdings, the Industrials sector company, was revisited by a Wall Street analyst on February 26. Analyst Ross Law from Morgan Stanley maintained a Buy rating on the stock and has a p1,500.00 price target.
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Ross Law has given his Buy rating due to a combination of factors including Rolls-Royce’s consistent outperformance versus expectations and the strength of its upgraded long‑term outlook. The company’s 2025 results surpassed consensus on revenue, profit, and free cash flow, underpinned by strong contributions from all divisions, particularly Power Systems, which materially exceeded forecasts.
Ross also highlights the substantial increase in 2028 guidance, with both free cash flow and operating profit now projected well above prior market estimates, reinforcing confidence in sustained earnings growth. Management’s decision to launch a sizeable multi‑year share repurchase program, returning the majority of free cash flow to investors alongside dividends, signals strong balance sheet health and conviction in future performance, supporting a positive risk‑reward and justifying the Buy recommendation.
In another report released yesterday, Deutsche Bank also maintained a Buy rating on the stock with a £13.25 price target.
Based on the recent corporate insider activity of 122 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.