LONDON (ShareCast) - (Sharecast News) - Rolls-Royce rallied on Tuesday as JPMorgan Cazenove hiked its price target on the stock to 535p from 475p "after another set of strong results".
The bank noted that last week, RR reported H1 24 results well ahead of consensus.

JPM said it was increasing its 2024-27 earnings per share estimates by 9%/8%/7%, and its 2024-27 free cash flow estimates by £261m/£171m/£143m/£34m .

"We increase our multiples-based Dec-25 price target by 13% to 535p reflecting higher EPS estimates and a slightly higher target valuation multiple, justified by the increasing evidence that RR is becoming a more resilient company," it said.

JPM said the new price target implies 20% potential upside over the next 18 months.

The bank rates the shares at 'overweight'.

At 1030 BST, the shares were up 3.1% at 457.60p.

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