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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

JPMorgan hikes Rolls-Royce target price following 'exceptionally strong' H1

(Sharecast News) - Analysts at JPMorgan hiked their target price on Rolls-Royce by 20% to 1,245p on Monday following the group's "exceptionally strong" H1 results. JPMorgan raised its FY25-30 earnings per share estimates for Rolls-Royce by 19%, 13%, 10%, 9%, 10%, and 8%, respectively, with the bigger EPS increase in 2025 being due to a provision release that may not recur at the same level in future years.

"RR remains a compelling investment in our view, offering a combination of strong markets (civil aero; data centres; German defence; civil nuclear renaissance) and a tremendous amount of ongoing self-help/transformation," said JPMorgan.

"We believe that higher target multiples are justified by the higher quality of RR's results, with growth now being driven by three strong divisions, with the potential for SMR (small modular nuclear reactors) to add a fourth leg in the 2030s."

JPMorgan also reiterated its 'overweight' rating on the stock.

Reporting by Iain Gilbert at Sharecast.com

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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