Rolls-Royce Shares (LON:RR) Could Be On Path To New Highs as JPMorgan Raises Price Target

Rolls-Royce shares (LON: RR) are hovering around 1,100p into the afternoon session, 0.4% lower on the day,  testing whether earlier resistance has once again turned into support for the name.

JPMorgan has increased its price target on the shares, setting sights on new highs for Rolls Royce.

The recent upgrade from JPMorgan sees the firm's price target on Rolls-Royce shares elevated to 1,320p from 1,245p, while maintaining an Overweight rating. This revision follows a series of encouraging developments that have significantly impacted investor sentiment and the company's market valuation.

This year has seen Rolls-Royce shares more than double off lows to trade 87.46% higher YTD, as bulls rallied behind the stock.

Operationally, Rolls-Royce has also expressed confidence in achieving its full-year 2025 targets, projecting an operating profit between £3.1 billion and £3.2 billion. This optimism is underpinned by increased aircraft flying hours and rising demand for data center power systems, offsetting the challenges posed by ongoing supply chain constraints.

A significant strategic win for Rolls-Royce was its selection by the UK government to provide small modular reactor (SMR) technology for a new program, with reactors planned for North Wales. This decision, supported by a £2.5 billion investment, aims to bolster the UK's clean energy generation capabilities and has further boosted investor confidence in Rolls-Royce's future prospects.

The recent price target increase from JPMorgan, coupled with the company's strong performance and positive outlook, will have holders wondering when, or if, Rolls-Royce shares could be poised to reach new highs. Analyst price targets can be fickle things however, so do not count your chickens just yet, there will be plenty of obstacles along the way.