Stock Price Prediction

Rolls-Royce (RR) stock has a bullish outlook with a price target of 800p, reflecting a 23% increase from prior estimates due to strong market sentiment and favorable currency tailwinds. Analysts expect the company to exceed fiscal year guidance, supported by improving EBIT projections and potential trading updates. This momentum positions RR as a top pick in the aerospace sector.

RR stock (Rolls-Royce) bears may argue that despite the recent price target increase to 800p, the stock faces risks from potential volatility in the defense segment due to geopolitical uncertainties and budget reviews in the UK and US. Additionally, the stock's sharp rally may have already priced in much of the positive sentiment, leaving limited upside in the near term. A pullback to support levels around 700p could be expected if market conditions worsen or if upcoming trading updates fail to exceed expectations.