{"id":47038,"date":"2026-04-10T12:01:07","date_gmt":"2026-04-10T12:01:07","guid":{"rendered":"https:\/\/www.europesays.com\/ch\/47038\/"},"modified":"2026-04-10T12:01:07","modified_gmt":"2026-04-10T12:01:07","slug":"ubs-trims-rolls-royce-price-target-but-sees-18-upside-as-engine-aftermarket-stays-tight","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ch\/47038\/","title":{"rendered":"UBS trims Rolls-Royce price target but sees 18% upside as engine aftermarket stays tight"},"content":{"rendered":"<p>    <img fetchpriority=\"high\" decoding=\"async\" src=\"https:\/\/www.europesays.com\/ch\/wp-content\/uploads\/2026\/04\/afcc4038c845725a4550b2444e88679f.jpeg\" alt=\"UBS trims Rolls-Royce price target but sees 18% upside as engine aftermarket stays tight\" loading=\"eager\" height=\"720\" width=\"909\" class=\"yf-lglytj  loaded\"\/> UBS trims Rolls-Royce price target but sees 18% upside as engine aftermarket stays tight Proactive uses images sourced from Shutterstock      <\/p>\n<p class=\"yf-1fy9kyt\">UBS remains bullish on the aerospace engineer ahead of next month&#8217;s trading update, despite cutting its target on peer group derating.<\/p>\n<p class=\"yf-1fy9kyt\">UBS has reduced its price target on <a href=\"https:\/\/finance.yahoo.com\/quote\/RR..l\" data-ylk=\"slk:Rolls-Royce Holdings PLC (LSE:RR.);elm:context_link;itc:0;sec:content-canvas\" data-yga=\"{&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yLinkText&quot;:&quot;Rolls-Royce Holdings PLC (LSE&quot;}\" class=\"link \" rel=\"nofollow noopener\" target=\"_blank\">Rolls-Royce Holdings PLC (LSE:RR.)<\/a> from 155p to 150p but retained its buy rating, with the bank arguing the shares offer around 18% upside from their current level of 1,278p.<\/p>\n<p class=\"yf-1fy9kyt\">The cut reflects a derating across UBS&#8217;s peer group rather than any deterioration in the company&#8217;s fundamental outlook, with the bank&#8217;s earnings forecasts for 2026 through 2028 virtually unchanged.<\/p>\n<p class=\"yf-1fy9kyt\">Ahead of Rolls-Royce&#8217;s first-quarter trading statement on 30 April, UBS does not expect the update to act as a meaningful catalyst for the stock either way, forecasting a straightforward reiteration of full-year 2026 guidance.<\/p>\n<p class=\"yf-1fy9kyt\">UBS flags that engine flight hours (EFH), a key metric for the civil aerospace aftermarket that drives lucrative long-term service revenues, are tracking slightly below prior expectations, running at around 108% of 2019 levels year-to-date, partly due to disruption from the Middle East conflict.<\/p>\n<p class=\"yf-1fy9kyt\">The bank has trimmed its EFH forecast to 115% of 2019 levels for 2026, from 118% previously, and models a 25 basis point margin headwind from 2028 onwards alongside a 1-2% reduction in aftermarket growth estimates.<\/p>\n<p class=\"yf-1fy9kyt\">Despite those adjustments, UBS continues to model \u00a36 billion in earnings before interest and tax (EBIT) for 2028 and \u00a35.1 billion in free cash flow, both within Rolls-Royce&#8217;s own guidance ranges.<\/p>\n<p class=\"yf-1fy9kyt\">UBS expects the trading statement to include positive commentary on Defence and Power Systems demand, potential contract wins, including a recent Bundeswehr announcement, and an update on progress with the company&#8217;s share buyback programme.<\/p>\n","protected":false},"excerpt":{"rendered":"UBS trims Rolls-Royce price target but sees 18% upside as engine aftermarket stays tight Proactive uses images sourced&hellip;\n","protected":false},"author":2,"featured_media":47039,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[129],"tags":[27267,27270,27269,14056,27268,223],"class_list":{"0":"post-47038","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-ubs","8":"tag-aerospace-aftermarket","9":"tag-efh","10":"tag-rolls-royce","11":"tag-rolls-royce-holdings-plc","12":"tag-trading-statement","13":"tag-ubs"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ch\/116380308829332396","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/47038","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/comments?post=47038"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/posts\/47038\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media\/47039"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/media?parent=47038"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/categories?post=47038"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ch\/wp-json\/wp\/v2\/tags?post=47038"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}