Rolls-Royce's 'upbeat' first-quarter shows notable recovery - analyst

Deutsche Bank repeated a 'buy' rating for Rolls-Royce Holdings PLC (LSE:RR.) after what it called an upbeat first-quarter update, with engine flying hours already at the lower end of the company’s full-year guidance range.

The broker has a 1,325p target price on the shares, compared with a last close of 1,182p. 

Analyst Christophe Menard said the engine maker delivered a "positive and upbeat" statement, despite uncertainties in the Middle East, with management confirming full-year 2026 guidance.

He said the update pointed to a notable recovery among Middle Eastern airlines, with flying hours for Trent XWB engines now “fully recovered to pre-conflict levels”.

Growth elsewhere also remained strong, the analyst noted, helped by capacity reallocation and improved operational performance.

Rolls' statement "gives the impression that the company truly stress-tested its business against the possible market backdrop and came out with a positive assessment", Menard concluded.