Rolls Royce (LON: RR) share price snapped its 7-day winning streak on Friday. The onset of the coronavirus pandemic sent the company’s shares on a bumpy ride. Its total market capitalization currently stands at £9.20 billion.
Rolls Royce Fundamental Analysis
JPMorgan analysts expect the Rolls Royce share price to improve in the upcoming months. The analysts lifted their price target on the Aerospace company to 130 pence per share. Its earnings forecasts for the next three years were raised to 49%, 31%, and 25% respectively.
The recovery of long-haul flights is linked to higher forecasts. JPMorgan also stated that the Rolls Royce sale of its ITP Aero business could drive free cash flow higher to £750 million by 2023. Rumors hovering over the markets stated that the sale could be worth £1.5 billion.
JPMorgan’s upgrade in the company’s outlook reflects positivity in the company’s earnings outlook. The company’s underlying profits for the first half of 2021 beat estimates by £536 million. This indicated that the company’s cost-cutting program had started paying off.
According to the analysis of Google search data, Rolls Royce Holdings plc is among the most searched investment among the UK stocks.
According to analysts from Citigroup, Rolls Royce could get a £100 million boost as the Airbus superjumbo revives from the pandemic. Rolls Royce is estimated to be powering about 60-65% of the airlines returning to service.
RR’s Technical Outlook
The Rolls Royce share price has been on a bullish momentum for the past month. The stock is trading more than 27% above its lowest point this year in January. At the time of writing, it was trading 1.14% lower at 110p.
On the daily chart, it is slightly above the 25 and 50-day exponential moving averages. It is also trading above the 200-day moving average, further boosting the bullish outlook.
Therefore, the stock is likely to extend its rally to December’s high at 135.50p. However, a move below the 200 DMA at 105.70 will invalidate this view.