London, Jan 14, 2026, 07:59 GMT — Premarket
- On Jan. 13, Rolls-Royce repurchased 428,382 shares as part of its £200 million buyback programme
- On Tuesday, shares closed at 1,305p, gaining 18p, or 1.4%
- Deutsche Bank bumped up its target price to 1,325p from 1,220p, maintaining a “buy” rating
Rolls-Royce Holdings announced it bought back 428,382 shares on Jan. 13, part of its £200 million share buyback plan, at an average price near 1,294 pence each. The company plans to cancel these shares and has repurchased a total of 3,579,872 shares since the programme started.
The London-listed engineer ended Tuesday at 1,305 pence, gaining 18 pence or 1.4%, hitting its 52-week peak once again. Investors are now eager for new clues on cash returns and the upcoming guidance.
Rolls-Royce kicked off its interim buyback programme in December after wrapping up a £1 billion repurchase in 2025. The company said this latest round should wrap up by Feb. 24 at the latest. It’s also set to reveal its full-year 2025 results on Feb. 26, when it plans to outline its buyback strategy for 2026.
Deutsche Bank raised its target price for Rolls-Royce to 1,325p from 1,220p in a sector note on European aerospace and defence stocks, maintaining a buy rating. The bank cited the sector environment, noting ongoing civil aerospace supply-chain challenges, and emphasized growth in Power Systems driven by data centres and defence contracts.
A share buyback occurs when a company spends cash to buy back its own shares, usually to cancel them. This cuts the total number of shares outstanding, potentially boosting earnings per share in the long run, though the immediate effect on the stock price can be difficult to measure.
Chris Beauchamp, chief market analyst at IG, noted that the surge in shares sets “levels that demand continued execution on multiple fronts,” cautioning that any falter could spark profit-taking following the recent rally. The Armchair Trader
Buybacks and positive broker notes have their limits. A hiccup in operational performance, delays in aircraft projects, or changes in defence spending projections could easily stall the rally, particularly since the stock is trading close to its peak.
Traders on Wednesday will focus on the early tape following the 8 a.m. London open and any momentum from broker calls in the aerospace and defence sector. The next major event to watch is Rolls-Royce’s full-year results on Feb. 26, with the interim share buyback set to conclude by Feb. 24.
