JPMorgan lifts Rolls-Royce price target

(Sharecast News) - JPMorgan lifted its price target on Rolls-Royce on Tuesday to 1,800p from 1,625p and maintained its 'overweight' rating. The bank noted that the company's first-half results last week were meaningfully ahead of the Bloomberg median consensus and Rolls-Royce significantly raised its 2026 guidance for EBITA and free cash flow.

"This was the ninth consecutive 'beat and raise' from RR since the FY23 results," JPM said.

"In our view, this was arguably the most impressive of the nine beats for two reasons. First, it is much harder to beat off a high base than a low base. Second, all three divisions significantly beat expectations and now have a higher earnings outlook."

JPM increased its 2026-30 estimated earnings per share by 19% / 14% / 13% / 13% / 14% and said the new target price implies around 20% potential upside over the next 17 months.

At 1424 BST, the shares were up 2% at 1,536.60p.