Rolls-Royce backed by Bank of America, shares trade below fresh target
27.06.2026 - 14:57:11 | ad-hoc-news.de
By Stefan Krueger, Long-Term & Business Model desk. Reviewed prior to publication on 2026-06-27, 14:56.
Rolls-Royce (GB00B63H8491) remains in focus on the London Stock Exchange, where the RR.L shares are listed in the FTSE indices. A fresh Buy-rated price target from Bank of America underscores the long-term case built on rising jet engine flying hours, according to a June research note.Bank of America research coverage summarized by ABC Money
What Bank of America projects
Bank of America has set a new Rolls-Royce price target of 1,740p and reiterated its Buy rating on the aerospace and defence group, implying roughly 24% upside from the closing price on 22 June 2026.Details of the BoA price target increase The bank’s note explicitly links its stance to large engine flying hours, which it says are running at around 115% of full-year 2019 levels in the first quarter of 2026.BoA comment on engine utilization trends
The BoA analysis highlights that after a softer March, April and May 2026 showed sequential improvement in flying hours, which is significant for Rolls-Royce because its civil aerospace revenues are closely tied to engine usage over time rather than one-off sales.Bank of America note on monthly flying hour momentum The bank also contrasts its 1,740p target with a consensus one-year target of about 1,425p collected by Yahoo Finance, indicating a materially more optimistic stance than the broader analyst community.Consensus comparison in the same analysis
Long-term fundamentals and valuation
Fundamentally, Rolls-Royce has reported a marked rise in profitability. Underlying operating profit increased from £1.6 billion in 2023 to £2.5 billion in 2024, a jump of roughly 57%, according to the company’s full-year 2024 results published via the London Stock Exchange and referenced in the BoA note.Summary of Rolls-Royce full-year 2024 results That improvement reflects both higher civil engine flying hours and cost efficiency measures under the current management’s turnaround program.
The BoA analysis also points to a current-year price-to-earnings ratio of around 38 times for Rolls-Royce, which it describes as demanding because it embeds significant future delivery into today’s valuation.BoA discussion of Rolls-Royce valuation multiples Civil aerospace peers such as GE Aerospace or Safran typically trade on lower multiples, which leaves little room for execution missteps if Rolls-Royce fails to sustain its current profit trajectory.
Background and price data on Rolls-Royce
More news, regulatory disclosures and historical prices for the Rolls-Royce shares are available in the dedicated topic section and on the company’s Investor Relations pages.
The business behind the stock
Rolls-Royce generates most of its cash flows from long-term service agreements on large civil jet engines, where airlines pay based on flying hours rather than just initial delivery. Key platforms include Trent-series engines powering widebody aircraft from Airbus and Boeing, alongside defense engines and power systems businesses in smaller but strategic niches.Rolls-Royce overview of civil aerospace products The civil service model gives high operational leverage to global air traffic cycles, which is why Bank of America’s focus on flying hours is central to its long-term view.
Where the shares trade today
On the London Stock Exchange, Rolls-Royce shares (GB00B63H8491) recently traded around 1,406.20p, about 8.25% below the 52-week high of 1,532.60p set on 25 June 2026, according to Financial Times markets data.FT markets summary for RR.L The shares therefore remain below the 1,740p level cited in Bank of America’s latest note.
Key data on the Rolls-Royce shares
- Company: Rolls-Royce Holdings plc
- ISIN: GB00B63H8491
- WKN: A1H81L
- Ticker: RR.
- Trading venue: London Stock Exchange (LSE)
- Price (as of 2026-06-25, 16:30): 1,406.20 pence
- Market cap: £116.55 billion (as of 2026-06-25)
- Sector / industry: Aerospace & Defense
- Index membership: FTSE 100
- Next earnings date: not officially scheduled
This article is for informational purposes only and does not constitute investment advice, a recommendation or an offer to buy or sell securities. All data have been compiled carefully but without guarantee.
