Rolls Royce share price outperformed most of the UK blue chips on Tuesday as the aerospace released a bullish business update. According to the update, the firm will be targeting to quadruple its profits by 2027.
As a result, the shares of the jet engine manufacturer were up 6.04% on a day when the FTSE 100 index showed minor losses amid a bearish sentiment in the market. This also marked the highest level for the shares in the last four years as they surged above 260p.
The investors seem to be taking a cautious approach after a brief recovery in the FTSE 100 index. While the US equities have performed very well in November, their UK counterparts appear to be lagging.
Today’s surge in the Rolls Royce shares comes due to the bullish outlook on the company’s future. In its latest business update, the CEO affirmed that the firm’s gross RnD spending will remain flat in the mid-term.
Rolls Royce Share Price Forecast
With the latest surge LON: RR has hit its highest level since 2019. It is currently retesting the supply zone 255p-262p supply zone. If bulls absorb the sell orders from this zone, Rolls Royce share price forecast might turn really bullish.
However, the bearish divergences on the RSI suggest that the upside could be limited.
