Rolls-Royce Upgraded at Deutsche Bank

It's been a positive week for Rolls-Royce (LON: RR.) shareholders, up almost 5%, despite the decline so far on Friday.

Overall, it has been a positive few months for investors, with the stock up over 47% in the last three months and more than 17% in 2023.

And analysts have taken note with Rolls-Royce upgraded to Buy from Hold at Deutsche Bankon Thursday. Deutsche Bank analyst Christophe Menard also raised the firm's price target on the stock to 136p from 90p.

In a research note to clients, Menard told investors that as supply chain issues linger, airlines will depend on the servicing of existing fleets to keep up with continued elevated customer demand in 2023. As a result, the analyst believes Rolls-Royce is well-positioned to benefit.

Furthermore, Deutsche Bank isn't the only firm to have upgraded Rolls-Royce shares this week, with Exane BNP Paribas lifting it to Neutral from Underperform, stating that momentum still favors aftermarket names in the aerospace and defense sector.

At the start of the month, Jefferies analyst upgraded Rolls-Royce to Buy from Hold, with analyst Chloe Lemarie also raising the firm's price target on the stock to 125p from 90p.

Lemarie sees several positive catalysts for the group in 2023, such as potential credit upgrades and further flight hours recovery.

Rolls-Royce shares are currently down over 1% Friday following a report by the Financial Times that stated the company's new chief executive, Tufan Erginbilgic, warned it is underperforming and described the company as a “burning platform.” However, Erginbilgic, speaking in a global address to staff, used his comments to pave the way for a big shake-up at the company.