London, Jan 15, 2026, 06:50 GMT — Premarket
- Shares of Rolls-Royce fell 2.3% on Wednesday, retreating after hitting a new 52-week high just the day before
- Company revealed an additional tranche of buybacks as part of its £200 million programme
- This week, Deutsche Bank and RBC raised their target prices in new notes
Shares of Rolls-Royce Holdings dropped 2.3% to 12.75 pounds on Wednesday, underperforming the stronger FTSE 100 after hitting a 52-week peak just the day before. (MarketWatch)
This retreat shifts attention squarely onto the immediate catalysts: share buybacks, upgraded broker targets, and the upcoming earnings guidance from a company that investors have aggressively pursued.
That mix is crucial now as the stock hovers near its highs and fresh company news remains scarce ahead of earnings season. Even minor updates—a broker note here, a buyback announcement there—are swaying sentiment.
Rolls-Royce repurchased 428,382 ordinary shares on Jan. 13, executing the buyback through UBS on the London Stock Exchange and other platforms. The company paid about 1,294 pence per share on a volume-weighted basis. A volume-weighted average reflects the average price paid, adjusted for the size of each trade. (Stockopedia)
The company plans to cancel the shares, a typical step in a buyback that lowers the total share count. Since the programme started, it has bought back 3,579,872 shares, paying an average of about 1,257.5 pence each. (Stockopedia)
Deutsche Bank’s Christophe Menard raised his target price for Rolls-Royce to 1,325p from 1,220p, maintaining a buy recommendation, MarketScreener reports. In a sector note shared by Sharecast, Deutsche Bank highlighted that despite ongoing supply chain issues, Rolls-Royce is expected to deliver strong aerospace performance through 2025-2028. The bank also flagged growth prospects in Power Systems, driven by data centres and defence contracts. (MarketScreener)
RBC bumped up its target price to 1,400p from 1,275p and kept its buy rating, MarketScreener reported. (MarketScreener)
Engine makers have found a tailwind as airlines extend aircraft lifespans, boosting demand for maintenance — a lucrative segment known as the “aftermarket,” covering spare parts and servicing. Shares of GE Aerospace, Safran, MTU Aero Engines, and Rolls-Royce have outpaced the market over the last 18 months, Reuters Breakingviews noted, fueled by this maintenance cycle and hefty aircraft order backlogs. (Reuters)
But the situation works both ways. If supply-chain bottlenecks persist, deliveries and timing of store visits may falter, pushing cash flow to fluctuate beyond what bulls anticipate. A misstep in earnings — or a slowdown in buybacks — might trigger a scramble out of an overcrowded trade.
Investors are eyeing upcoming buyback updates ahead of the London open, alongside any changes in broker sentiment as the stock approaches its recent highs. Rolls-Royce’s next key event is the full-year 2025 results, scheduled for Feb. 26. The company also confirmed its £200 million interim buyback will continue through to, at the latest, Feb. 24. (Rolls Royce)
