Rolls-Royce Holdings plc stock (GB00B63H8491): RBC sticks with Buy rating and 1,600p target as shares trade near recent highs

Rolls-Royce Holdings plc shares on the London Stock Exchange traded around the 1,260p mark this week, while RBC on 06/05/2026 reiterated its Buy rating and 1,600p price target on the UK engineering group. The stock remains closely watched after a strong multi-year recovery in civil aerospace and defense.

Rolls-Royce Holdings plc shares remained in focus in London on Friday as the UK-based engineering group continued to trade not far from recent highs, while Royal Bank of Canada (RBC) reiterated its positive stance on the stock with an unchanged price target. According to MarketBeat, the shares closed at GBX 1,258.20 on the London Stock Exchange on 06/03/2026, down 1.75% on the day, but still well above levels seen a year earlier as the group benefits from recovering flying hours and strong defense demand, based on MarketBeat as of 06/03/2026. In its latest note dated 06/05/2026, RBC maintained a Buy rating and a 1,600p price target on Rolls-Royce Holdings plc, according to MarketScreener as of 06/05/2026.

The company is headquartered in the United Kingdom and its primary listing is on the London Stock Exchange under the ticker RR, anchoring its valuation and analyst coverage firmly in the UK market. As of early June 2026, the consensus price target compiled by MarketBeat stood at GBX 1,390.20, implying roughly 10.5% upside from the GBX 1,258.20 closing price on 06/03/2026, again according to MarketBeat as of 06/03/2026. For German investors, Rolls-Royce Holdings plc can also be accessed via secondary trading lines such as Tradegate in euros, though the main liquidity remains in London in pounds sterling.

As of: 06/05/2026

By the editorial team - specialized in equity coverage.

At a glance

• Name: Rolls-Royce
• Sector/industry: Aerospace and defense, power systems
• Headquarters/country: London, United Kingdom
• Core markets: Commercial aviation, defense, power generation, marine and energy infrastructure
• Key revenue drivers: Large civil aircraft engines and aftermarket services, defense aero engines and services, power systems including mtu-branded engines and energy solutions
• Home exchange/listing venue: London Stock Exchange (RR)
• Trading currency: GBP

Rolls-Royce Holdings plc: core business model

Rolls-Royce generates most of its value by designing, manufacturing and servicing aircraft engines and related power systems for civil and defense customers, complemented by power systems for industrial and energy applications that create long-duration aftermarket revenue streams linked to engine flying hours and service contracts.

Valuation metrics and multiples for Rolls-Royce Holdings plc

From a valuation perspective, the latest consensus data compiled by MarketBeat as of 06/03/2026 suggest that the market is pricing Rolls-Royce Holdings plc at a level that still implies upside relative to analysts’ average expectations. MarketBeat reported a consensus price target of GBX 1,390.20 for Rolls-Royce Holdings plc as of 06/03/2026, corresponding to an estimated 10.5% upside from the GBX 1,258.20 closing share price on the same date, based on MarketBeat as of 06/03/2026. While detailed real-time valuation ratios such as forward price-to-earnings or enterprise value to EBITDA can fluctuate with both earnings estimates and share price, the presence of a double-digit percentage gap between the market price and the consensus target underlines that a number of research houses still see room for further progress, even after the strong rebound of the stock in recent years.

Some recent commentary has also placed the stock in the context of the broader aerospace and defense sector’s valuation. In a narrative article dated 07/31/2025, Simply Wall St noted that Rolls-Royce Holdings plc shares were trading at about £11.40 at that time, which the publication equated to roughly 16 times the prior year’s profit, compared with around 24 times earnings for a typical aerospace and defense peer group, according to Simply Wall St as of 07/31/2025. Although these figures refer to an earlier point in time and use past earnings, they illustrate that the shares have at times traded at a discount to the sector on a simple price-to-earnings basis, a factor that has attracted valuation-focused investors tracking the company’s turnaround in profitability and cash generation.

Conclusion

RBC’s decision on 06/05/2026 to reaffirm its Buy rating and 1,600p price target for Rolls-Royce Holdings plc, combined with a consensus target of around 1,390p versus a 1,258.20p share price on 06/03/2026, underscores that the UK-listed aerospace and defense group remains positively viewed by many analysts despite its strong multi-year recovery. The current valuation framework reflects expectations for continued progress in profitability and cash generation as civil aerospace flying hours normalize and defense spending stays robust.

For investors tracking the stock on the London Stock Exchange as well as on German trading venues, the key questions over the coming quarters will likely center on whether Rolls-Royce Holdings plc can sustain margin improvements, execute on its power systems strategy and maintain balance-sheet discipline, factors that will influence how closely the share price ultimately converges with or diverges from the targets set by research houses such as RBC.

Disclaimer: This article does not constitute investment advice. The comprehensive scope of this informative article was made possible through the use of a.i.. Stocks are volatile financial instruments.