The Rolls-Royce share price fall this year has attracted the interest of investors who, for long, had admired the company but could not afford to add it to their portfolio due to its prices. Today, trading for pennies, Rolls-Royce is also looking attractive to traders looking for a long-term investment opportunity.
There are many factors that, in the past few months, have started to point to a possibility that we might see Rolls-Royce’s share price resurgence. One of these factors is the ongoing war between Russia and Ukraine, which is projected to result in high demand for Rolls-Royce Defence division products.
There is also the rolling back of the pandemic restrictions and airline slowly resuming their daily operations. Rolls-Royce, with almost 50 per cent of its revenue coming from its Aerospace division, is expected to see a growth in its revenue in the next few months, which might impact its share price.
Other factors, such as the recently announced UK’s defence budget from 2 per cent to 3 per cent of the country’s GDP, will likely see a chunk of the £27bn going to the Rolls-Royce Defence division.
Therefore, any investors doing a quick fundamental analysis see Rolls-Royce as well positioned to see its prices surging in the next few trading sessions despite being saddled with billions of pounds in losses.
Rolls-Royce Share Price Forecast
Despite dropping by a percentage point in today’s trading session, the past few trading sessions have been aggressively bullish. This has resulted in the company’s value increase by 5 per cent this week.
As shown above, most fundamental analysis data also shows a high likelihood of a continued recovery of Rolls-Royce’s share price. Therefore, I expect the company’s price to continue rising and possibly trade above the 80p price level in the next few trading sessions. However, a drop below the 69 demand level will invalidate my long-term bullish analysis.
Rolls-Royce Daily Chart
