Rolls-Royce shares continue to climb as banks raise price targets
Rolls-Royce has been a stellar performer this year with gains in excess of 220% and the reasons to continue to go long come from a number of analysts who continue to raise their price targets on the stock price.
Yesterday, Citi increased its price target on the engineering company. It raised its target to 431p from 294p and lifted its EPS forecasts by 27% in the near-term and 52% in the long-term, driven by strong cash generation. It comes after UBS and Deutsche Bank analysts increased their share price target to 400p on Friday, after an upgrade by JPMorgan last week. All this follows Rolls-Royce showcasing a mock-up of its Space Micro-Reactor Concept Model. The small, advanced reactor is scheduled for a demonstration on the Moon early next decade and is designed to provide future bases with the power needed to survive cold lunar night.
(AI Video Transcript)
Rolls-Royce
Rolls-Royce has been making big waves in the market lately, catching the attention of investors. Despite not much news from the company itself, its share price has been steadily climbing. Just yesterday, it closed just below £3, showing an impressive gain of 219.8% so far this year. This makes it one of the top performers on the FTSE 100.
Citi
One of the reasons for this surge in share price is because Citi, a well-known financial institution, raised its price target for Rolls-Royce to £431.294. That's a big jump from where it was before. Citi also increased its earnings per share forecast for the company, expecting strong cash generation. This positive momentum was further strengthened by upgrades from UBS and Deutsche Bank analysts, who also raised their share price target to £400. J.P. Morgan had already upgraded the stock earlier, adding to the growing optimism.
Rolls-Royce stock performance
But Rolls-Royce is not just making headlines because of its stock performance. The company recently unveiled a mock-up of its space micro-reactor concept model. This innovative reactor aims to provide future lunar bases with power during the cold lunar night. The news of this exciting development has added to the company's already significant gains.
Overall, Rolls-Royce's share price has seen an impressive increase of around 220%, thanks to positive developments, increased price targets, and upgrades from financial institutions. And with the anticipation surrounding its space micro-reactor concept and its plans for lunar demonstration, the company is definitely catching the eye of investors.
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