12:43 AM EST, 11/11/2026 (MT Newswires) -- AlphaValue/Baader Europe believes Rolls-Royce Holdings' (RR.L) "impressive" operational recovery is now reflected in the British aerospace and defense company's valuation. Accordingly, the research firm on Tuesday raised the reduce-rated stock to 13.33 pounds sterling from 12.64 pounds. "Despite higher earnings estimates, our target price increases only modestly as we remove the 20% premium previously applied to peer multiples. While Rolls Royce's operational turnaround remains impressive, we believe much of the improvement is now reflected in the share price. Near-term risks have increased, with weaker Middle Eastern traffic and elevated fuel prices potentially weighing on large-engine flying hours and accelerating the retirement of older widebody engines. Although the installed fleet should continue to grow, faster retirements could temper aftermarket growth. Meanwhile, potential overcapacity in high-speed engines poses a medium-term risk to Power Systems," analysts said, adding they no longer see "sufficient justification" for Rolls-Royce's premium valuation over its peers. On the earnings side, AlphaValue/Baader Europe lifted its EPS forecasts for full-year 2026 and 2027 to 0.436 pound and 0.521 pound, respectively, from 0.365 pound and 0.433 pound, to account for the company's upgraded 2026 outlook. The research firm noted its underlying operating profit assumption of 4.1 billion pounds is now "outdated" after management raised its guidance to between 4.7 billion pounds and 4.9 billion pounds from the previous target of 4 billion pounds to 4.2 billion pounds.

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