Is Rolls-Royce Stock Still A Top Aerospace Buy In 2025 After A 147% Surge?

Summary

  • Rolls-Royce Holdings plc has shown significant EBITDA and free cash flow growth, with projections indicating continued strong performance through 2026 despite aerospace supply chain challenges.
  • The company faces risks like supply chain issues and high R&D costs, but has opportunities in defense spending and energy transition with SMRs.
  • Rolls-Royce's turnaround and growth prospects, including the UltraFan engine and SMRs, support a positive outlook and a potential 30-50% stock price upside by FY25-26.
  • Despite current challenges, Rolls-Royce's strong market position and future growth platforms make it a buy, with share price weaknesses seen as buying opportunities.
  • Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More »

Airbus A350 Air France taxiing at Charles de Gaulle Airport

Matthieu Douhaire

Rolls-Royce Holdings plc (RYCEF, RYCEY) stock has gained 4.1% since my coverage in September and that means that the stock underperformed against the S&P 500 (SP500), which gained 5.8%. However, viewing the bigger picture, we see that

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This article was written by

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Dhierin-Perkash Bechai is an aerospace, defense and airline analyst.

Dhierin runs the investing group The Aerospace Forum, whose goal is to discover investment opportunities in the aerospace, defense and airline industry. With a background in aerospace engineering, he provides analysis of a complex industry with significant growth prospects, and offers context to developments as they occur, describing how they might affect investment theses. His investing ideas are driven by data informed analysis. The investing group also provides direct access to data analytics monitors. Learn more.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of EADSF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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