Unstoppable Momentum: Rolls-Royce's Journey to the Top of the Defence Sector

Rolls-Royce Holdings' stock performance has been boosted considerably through a resilient defence sector and strategic business redesigns. Bernstein recently increased Rolls-Royce's target price to 676p from 630p, reflecting increasing optimism regarding the prospects of the company. This action follows the wider analyst sentiment, which is still generally favourable as a result of Rolls-Royce's resilient financial turnaround and huge defence contracts.

With shares rising by more than 35% in 2025, Rolls-Royce is well-positioned for growth, as its strategic emphasis on innovation and efficiency continues. Threats are high market expectations and geopolitical risks.

 

Source: Morningstar, Capital.com, The Fool UK