Rolls‑Royce shares rise to £14 as analysts forecast strong cash flow and buyback

Rolls‑Royce plc’s London‑listed shares have climbed to £14.08, up about 17.6% year‑to‑date, moving well above most analysts’ expectations from a year ago. The company reported 2025 free cash flow of £3.3 bn and underlying operating profit of £3.5 bn, with a margin of 17.3%. Consensus forecasts project free cash flow of £3.734 bn in 2026, £4.438 bn in 2027 and £5.150 bn in 2028, aligning with management’s 2028 target of £5.0‑5.3 bn. A discounted‑cash‑flow model yields a fair value around £171 bn, roughly 38% above the current market capitalisation.

Analysts maintain price targets near £15‑£16, with an average of £14.23, while a few have higher aspirations up to £20, which would require exceptionally strong half‑year results and guidance. The firm also announced a £7‑9 bn share‑buyback programme for 2026‑2028, including £2.5 bn in 2026, signalling confidence in cash generation. Uncertainties such as geopolitical tensions and oil‑price spikes remain, but the outlook remains broadly positive for investors.