- Rolls Royce share price has risen sharply to make the 1,000p level a viable target amid rising prospect of increased orders.
Rolls Royce share price rose to new all-time highs of 929p in late afternoon trading on Thursday after rising by more than 1.5%. The gains came on the heels of JP Morgan’s upbeat outlook of the stock, raising the price target from 900p to 1,040p. The stock’s upside is supported by an uptick in the demand for its engines from the civil aviation and defence industries.
In its analysis, JP Morgan also adjusted upwards its EPS forecast for the 2026-2028 period by between 1-2% , adding that a weaker US dollar will likely result in more orders and increased cash flow for the company. With air travel passenger numbers having recovered to return to pre-pandemic levels, engine orders from plane manufacturers are piling up fast.
Rolls Royce is the exclusive supplier for the Airbus A330neo and Airbus A350 widebody jets which use its Trent 7000 and Trent XWB engines. In addition, the British engineering giant has a substantial order lineup for Boeing’s 787 Dreamliner jets. Furthermore, Chinese airlines have been angling to increase their fleet sizes, and the scheduled travel to China by a European delegation in July could inject fresh volatility into Rolls Royce stock price.
Meanwhile, the recent escalation of geopolitical risks in the Middle East and the ongoing Russia-Ukraine war has raised the prospect of increased military spending, which augurs well for Rolls Royce’s defence contracting business.
Rolls Royce Share Price Prediction
Rolls Royce share price pivots at 917p and the momentum favours the buyers to stay in control. That will likely see primary resistance encountered at 929p. However, an extended control by the buyers will breach that barrier and could push the action higher to test 935p.
Conversely, going below 917p will signal a shift in the momentum to the downside. That will likely see primary support established at 909p. Breaking below that level will invalidate the upside narrative. Furthermore, an extended control by the sellers could send the action lower to test 901p.
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