Rolls-Royce shares: With a lot of tail! – Financial trends

Shares of British engine maker Rolls-Royce exploded further last week. In the housing market in London, prices rose to 369.10 British pence (GBX) and marked a 5 1/2-year high. The reason for the positive situation was the statistics of the last financial year.

The company announced that adjusted operating profit rose from £652 million to £1.6 billion. This exceeded our own expectations of £1.2 billion to £1.4 billion and analysts’ average expectations of £1.4 billion.

Operating profit is expected to rise to £2.0 billion

And the British want to continue on the growth path in 2024. Due to increased demand for aircraft engines and thanks to orders from the defense sector, Rolls-Royce expects an operating profit of 1.7 to 2.0 billion pounds.

The segment is also receiving approval from analysts. In a recent study, US bank JPMorgan raised its price target from GBX 400 to 475 and left the rating at Overweight. On average, most analysts see the engine manufacturer as worth 400 GBX.

Rolls Royce Stock Chart

What’s next for Rolls-Royce shares?

On the upside, the next technical barriers are 364.10 and 379 GBX. This would clear the way to reach the GBX 400 mark and the record high since the beginning of 2014 at GBX 444.10.