Source: Sharecast
JPMorgan raised its FY25-30 earnings per share estimates for Rolls-Royce by 19%, 13%, 10%, 9%, 10%, and 8%, respectively, with the bigger EPS increase in 2025 being due to a provision release that may not recur at the same level in future years.
"RR remains a compelling investment in our view, offering a combination of strong markets (civil aero; data centres; German defence; civil nuclear renaissance) and a tremendous amount of ongoing self-help/transformation," said JPMorgan.
"We believe that higher target multiples are justified by the higher quality of RR's results, with growth now being driven by three strong divisions, with the potential for SMR (small modular nuclear reactors) to add a fourth leg in the 2030s."
JPMorgan also reiterated its 'overweight' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com