{"id":67242,"date":"2026-08-05T14:26:09","date_gmt":"2026-08-05T14:26:09","guid":{"rendered":"https:\/\/www.europesays.com\/germany\/67242\/"},"modified":"2026-08-05T14:26:09","modified_gmt":"2026-08-05T14:26:09","slug":"deutsche-bank-lifts-rolls-royce-target-to-1705p-on-margin-strength","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/germany\/67242\/","title":{"rendered":"Deutsche Bank lifts Rolls-Royce target to 1705p on margin strength"},"content":{"rendered":"<p>    <a href=\"https:\/\/s.yimg.com\/lo\/mysterio\/api\/424C60243F14468C912C4FD0F86639B71E86E4345F1DDCFA6739B1AE08CBA5E5\/subgraphmysterio\/resizefit_w960;quality_80;format_webp\/https:%2F%2Fmedia.zenfs.com%2Fen%2Fproactive_uk_164%2Fa7cfaa3cae620baf5efa906b309eacfa\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img loading=\"lazy\" decoding=\"async\" src=\"data:image\/gif;base64,R0lGODlhAQABAIAAAAAAAP\/\/\/ywAAAAAAQABAAACAUwAOw==\" alt=\"Deutsche Bank lifts Rolls-Royce target to 1705p on margin strength\" height=\"540\" width=\"960\" class=\"yf-j98iil loader\"\/><\/a> Deutsche Bank lifts Rolls-Royce target to 1705p on margin strength Proactive uses images sourced from Shutterstock           <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Deutsche Bank has raised its price target on <a href=\"https:\/\/finance.yahoo.com\/quote\/RR..l\" data-ylk=\"slk:Rolls-Royce%20Holdings%20PLC%20(LSE%3ARR.);elm:context_link;itc:0;sec:content-canvas;source:content-canvas%20default\" data-yga=\"{&quot;yLinkText&quot;:&quot;Rolls-Royce Holdings PLC (LSE:RR.)&quot;,&quot;yLinkElement&quot;:&quot;context_link&quot;,&quot;yModuleName&quot;:&quot;content-canvas&quot;,&quot;yTrafficOrigin&quot;:&quot;content-canvas default&quot;}\" target=\"_blank\" rel=\"nofollow noopener\">Rolls-Royce Holdings PLC (LSE:RR.)<\/a> to 1705p from 1325p, arguing that the engine maker&#8217;s momentum extends well beyond the end of its current guidance period.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The bank reiterated\u00a0its &#8216;buy&#8217;\u00a0rating, with the new target implying upside of around 11% from the 1529.4p close.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Analyst Christophe Menard has revised his 2028 expectations following the upgrade to full-year guidance, noting that every division is already running ahead of forecasts this year.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The standout figure is the civil aerospace operating margin, which hit a record 25.3% in the first half.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">That is comfortably above the 21% to 23% range Rolls-Royce has guided to for 2028, two years early, and Menard sees no meaningful headwinds ahead.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Behind it sits a stronger aftermarket performance, driven by improved margins on long-term service agreements and a higher volume of shop visits.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Long-term service agreements are the contracts under which Rolls-Royce maintains engines over their operating life, historically a drag on profitability because the group was paid by the flying hour while carrying the maintenance cost.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">Deutsche treats the improvement there as structural rather than cyclical, forecasting a 28 percentage point swing in long-term service agreement margins between 2022 and 2028.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">That comes from a combination of operational and commercial measures, with engines staying on wing for longer and the cost of each shop visit falling.  <\/p>\n<p class=\"text text-block paragraph text-left neo-font-paragraph-xl-reg  yf-18d6y07\" style=\"text-decoration: none; font-style: normal; text-transform: none; text-align: inherit; font-variant-numeric: normal;\">The upgrade continues a run of increases from the bank, which had been at 1325p before this note.  <\/p>\n","protected":false},"excerpt":{"rendered":"Deutsche Bank lifts Rolls-Royce target to 1705p on margin strength Proactive uses images sourced from Shutterstock Deutsche Bank&hellip;\n","protected":false},"author":2,"featured_media":67243,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21213],"tags":[50400,21214,34407,30325,50399,50401,3820],"class_list":["post-67242","post","type-post","status-publish","format-standard","has-post-thumbnail","category-deutsche-bank","tag-christophe-menard","tag-deutsche-bank","tag-operating-margin","tag-rolls-royce","tag-rolls-royce-holdings-plc","tag-service-agreements","tag-target"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/67242","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/comments?post=67242"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/posts\/67242\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media\/67243"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/media?parent=67242"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/categories?post=67242"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/germany\/wp-json\/wp\/v2\/tags?post=67242"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}