Rolls-Royce, once a laggard in most DIY investor portfolios, is now ranking around the top of brokers’ most popular stocks. It was just over a year ago that new chief executive Tufan Erginbilgic started at the business, claiming it had been “grossly mismanaged” for years. Since he took charge, the shares have almost quadrupled in value — but can it last?
The FTSE 100 company’s largest business is in civil aerospace, where it manufactures engines for large commercial aircrafts and regional jets. Most of the profits in this segment come not from sales, but the money it makes from the long-term contracts to service the engines — this means the longer they are in use, the more money Rolls makes. The pandemic, when planes were
