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(Sharecast News) - Analysts at Berenberg lifted their target price on RollsRoyce to 1,900p from 1,430p, citing the group's continued outperformance in engine flying hours and its strong positioning across civil aerospace, defence and power systems.
Berenberg said RollsRoyce was again the strongest performer in July, recording 5.7% programmeweighted, thrustadjusted EFH growth yearonyear - ahead of Safran at 3.5% and MTU at 1.6%. Yeartodate, RollsRoyce has delivered 5% adjusted EFH growth, compared with 2.4% at Safran and a 0.4% decline at MTU.
Sequential growth also remained robust, with RollsRoyce posting a 9% monthonmonth increase in July, driven by the Trent XWB and Trent 700 programmes. Berenberg also highlighted that the company's largeengine fleet remained the youngest among European peers, with an adjusted average age of 11.9 years, supported by a high share of engines under ten years old. That profile, it added, underpins a durable mediumterm growth outlook.
The German bank noted that elevated jetfuel prices - still 55% to 65% above preconflict levels across major hubs - continued to shape flyinghour trends, but said RollsRoyce's exposure to newer, more efficient widebody engines provided resilience.
Berenberg reiterated RollsRoyce as its 'top pick', arguing the group was benefiting from powerful endmarket growth and selfhelp measures across all divisions. It added that the shares remained attractively valued, trading on a 4.4% freecashflow yield in 2028 - around 80 basis points cheaper than peers.
Reporting by Iain Gilbert at Sharecast.com
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