Rolls Royce (LON: RR) share price continues to make waves as the luxury car manufacturer’s shares have hit a new 3-yearly high. The shares of the aviation giant are changing hands at 216p, up 1.47% till press time.
The FTSE100 index has risen by 200 points since last week. This suggests positive market sentiment in the UK stock market. Earlier in August, Rolls Royce shares jumped 15% after reporting a strong earnings report for the second quarter.
UBS Upgrades Rolls Royce Rating
UBS announced a 75% increase in the price target for the Rolls Royce stock. The Swiss investment bank set £3.5 as the new price target while maintaining its “Buy” rating. Earlier, Barclays also increased their price target from £1.56 to £2.39 for the jet engine manufacturer.
Rolls Royce announced a £673 million profit, which was five times more than last year’s half-yearly profit, in its Q2 earnings report. The operating margin for the jet engine manufacturer was 9.7% compared to 2.4% in the first half of 2022. As a result of the bullish earnings report, Rolls Royce share price soared 15%.
The price chart for LON: RR shows the price is trading 5.3% above the 0.5 retracement level of 206p. Many times, the price reverses from this level. However, the price faked the reversal before breaking above 206p.
The Rolls Royce share price forecast is expected to remain bullish as long as the price stays above 206p. The bullish target is the 0.618 fib level, at 247p. However, if the price breaks below 0.5 fib level again, the bears can expect another retest of the 174.6 support level.
In the meantime, I’ll keep sharing updated Rolls-Royce stock forecasts and my personal trades on my Twitter, where you are welcome to follow me.