FTSE 100-listed Rolls-Royce Holdings PLC (GB:RR) has received bullish reviews from UBS analyst Ian Douglas, who believes in the company’s long-term growth prospects. The bullish review came ahead of RR’s Q3 trading update, scheduled on November 7. Douglas confirmed his Buy rating on the stock yesterday and predicts 21.3% upside potential. RR stock is trading down by 0.038% as of writing.
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So far this year, the stock has risen more than 75%, making it one of the top performers on the FTSE 100 Index in 2024.
Rolls-Royce specializes in designing engines and power systems for the aerospace and defence industries around the world.
UBS Maintains Optimistic Outlook on RR
UBS maintains its optimistic outlook on RR stock and expects the company to highlight its long-term growth potential in the upcoming quarterly update.
UBS noted that the company’s EFH (engine flying hours) stayed at the lower end of expectations, reaching 100-101% of 2019 levels in July and August. This metric is expected to be about 102% in September. EFH is an important measure for Rolls-Royce to optimize its operations.
Douglas also said that investors have shifted their attention away from short-term flying hours due to the ongoing transformation in the last year. This highlights the increased confidence in the company. As a result, he believes that the update will reflect a positive outlook on long-term goals, although no new targets might be announced.
TipRanks Rates Analysts Based on Accuracy and Success
Douglas is a five-star-rated analyst as per the TipRanks Star Ranking. Interestingly, TipRanks tracks the performance of numerous financial experts, ranking them based on their success rate, average returns, and statistical significance.
Over the last year, Douglas has had a 68% success rate and delivered an average return of 24.5%.
Is Rolls-Royce a Good Stock to Buy?
According to TipRanks, RR stock has received a Moderate Buy rating based on seven Buys, two Holds, and one Sell recommendation from analysts. The Rolls-Royce share price forecast is 548.18p, which is 4% higher than the current trading level.
