Rolls-Royce Holdings plc is back in the spotlight today as fresh analyst calls, a major Middle Eastern engine win and renewed scrutiny from Emirates all land at once.
On 18 November 2025, the London‑listed aero‑engineer is trading slightly lower despite a new “outperform” rating from RBC Capital Markets, a higher price target from Morgan Stanley and confirmation that Etihad Airways will power a significant Airbus wide‑body order with Rolls-Royce Trent engines. At the same time, Emirates has again delayed a potential Airbus A350‑1000 order, saying it wants to see improvements in Rolls-Royce’s upgraded engines before committing. [1]
Below is a detailed look at everything moving the Rolls-Royce share price today.
Rolls-Royce share price today
As of trading on 18 November 2025, Rolls-Royce Holdings (LON: RR) shares are changing hands around 1,081.5p, down a little over 1% from the previous close of 1,094.5p. The stock has traded in an intraday range of 1,064p to 1,088.5p and sits within a 52‑week band of 517.2p to 1,195p. [2]
That means the shares are still close to record highs after a remarkable run: data compiled by LSEG and cited in today’s Reuters note show the stock is up around 90–93% year‑to‑date, giving Rolls-Royce a market capitalisation close to £90–95bn. [3]
Analyst consensus remains positive. LSEG and Investing.com data point to an overall “buy” recommendation, with a median or average 12‑month price target in the 1,190–1,245p range – modestly above today’s level. [4]
RBC initiates Rolls-Royce at ‘outperform’
The big brokerage headline today comes from RBC Capital Markets, which has initiated coverage of Rolls-Royce with an “outperform” rating and a 1,275p price target (about £12.75 per share). [5]
Key points from RBC’s initiation note include:
- Turnaround to “steady footing” – RBC argues that after a turbulent previous decade, Rolls-Royce has entered a more stable phase as operational performance improves and engine durability issues are progressively addressed. [6]
- Wide‑body civil engines drive the value – although the wide‑body civil engine business represents roughly a third of group sales, RBC’s sum‑of‑the‑parts model suggests it accounts for around 70% of Rolls-Royce’s equity value, helped by high‑margin aftermarket service contracts. [7]
- Cash generation advantage – the bank forecasts a 4.4% free cash flow yield in 2026, compared with a peer average near 3.2%, and expects the civil wide‑body division to remain in a “cash‑harvest” phase well into the next decade. [8]
- Growth above the market – on the back of its Trent family of engines, RBC expects Rolls-Royce’s wide‑body business to outgrow the overall market by about two percentage points per year and supports an ~8% compound annual sales growth rate for the group through 2030. [9]
Interestingly, the Reuters summary of the call notes that despite the upbeat stance, Rolls-Royce shares were down nearly 2% to around 1,072.5p around the time the note circulated, suggesting some profit‑taking after the strong year‑to‑date rally. [10]
Morgan Stanley lifts its target – and others are already on board
RBC is not alone in turning more bullish. A separate report highlights that Morgan Stanley has nudged its price target up to 1,280p while maintaining an “Overweight” rating, citing strong momentum in civil aerospace, defence and power systems. [11]
Earlier this year, Berenberg moved Rolls-Royce from “sell” to “hold” with a target around 1,080p, a level the stock has since comfortably exceeded. [12]
Taken together, the latest calls reinforce a narrative that:
- The turnaround driven by CEO Tufan Erginbilgic is firmly embedded.
- Revenue and cash flow visibility are improving thanks to higher flying hours and a growing installed base of Trent engines.
- Investors are increasingly treating Rolls-Royce as a structural growth story rather than a post‑pandemic recovery play.
Etihad picks Rolls-Royce engines in a major Dubai Airshow order
The most tangible commercial news today is the confirmation that Etihad Airways will use Rolls-Royce engines to power a major expansion of its Airbus wide‑body fleet, announced at the Dubai Airshow 2025.
Airbus and Etihad said the Abu Dhabi‑based carrier has: [13]
- placed a firm order for six A330‑900s,
- ordered seven additional A350‑1000s and three A350F freighters, and
- agreed to lease nine A330‑900s from lessor Avolon.
In its own press release, Rolls-Royce “welcomed” Etihad’s plans and noted that the aircraft will be powered by its Trent 7000 engines on the A330neo and Trent XWB‑97 engines on the A350‑1000 and A350F. [14]
Rolls-Royce also highlighted that:
- The Trent 7000, which exclusively powers the A330neo, has now flown more than three million hours with strong reliability, and a time‑on‑wing enhancement package has already dramatically extended on‑wing life for some operators.
- The Trent XWB‑97, powering the A350‑1000 and A350F, has similarly clocked more than three million flying hours, and incremental durability upgrades are expected to double time on wing in harsher environments by 2028. [15]
For Rolls-Royce investors, this is exactly the kind of order that underpins RBC’s “cash‑harvest” thesis: the engines themselves are sold at relatively slim margins, but each new wide‑body commitment extends the company’s long‑term aftermarket revenue stream for decades.
Emirates keeps pressure on A350‑1000 engines
While Etihad is doubling down on Airbus wide‑bodies with Rolls-Royce power, Emirates is still holding out.
In comments reported by Bloomberg today, Emirates president Tim Clark said he will “refrain” from ordering the Airbus A350‑1000 for now, explaining that he wants to see how upgraded Rolls-Royce engines perform once they enter service around 2028 before taking the plunge. [16]
The article notes that:
- Clark has long criticised the durability of the A350‑1000’s Rolls-Royce engines in Gulf operating conditions.
- Emirates has instead committed to additional Boeing 777X aircraft, even as it keeps the A350‑1000 option under review. [17]
This contrast between neighbours Etihad and Emirates is striking. Reporting from UAE outlet The National points out that Etihad acknowledges the Trent XWB‑97 still requires shop visits sooner than ideal but says a favourable spare‑engine arrangement with Rolls-Royce leaves it comfortable with the type, noting that the A350‑1000 currently has the highest utilisation in its fleet. [18]
For Rolls-Royce, Emirates’ caution is both a risk and an opportunity:
- It underlines how important the ongoing £1bn durability investment across modern Trent engines is to winning and retaining Gulf wide‑body customers. [19]
- If the 2028 upgrades deliver as promised, Emirates could yet become a major incremental customer later in the decade.
Trading update confirms strong 2025 guidance
Today’s analyst enthusiasm builds on last week’s trading update to 31 October 2025, in which Rolls-Royce reaffirmed its upgraded full‑year guidance.
Key takeaways from that update include: [20]
- Guidance unchanged – the group continues to target underlying operating profit of £3.1bn–£3.2bn and free cash flow of £3.0bn–£3.1bn for 2025, implying at least mid‑20s percentage growth versus 2024.
- Civil Aerospace – large engine flying hours in the first ten months of 2025 were up 8% year on year and at around 109% of 2019 levels, supported by strong long‑haul demand and new orders for Trent XWB‑97‑powered Airbus A350Fs from customers such as Air China Cargo and Korean Air.
- Defence – activity remains robust, aided by the Global Combat Air Programme (GCAP) and an agreement to export 20 Eurofighter Typhoons to Türkiye, powered by Rolls-Royce’s EJ200 engines.
- Power Systems – order intake continues to grow, particularly for data‑centre backup power solutions, with new high‑efficiency engines and fast‑start gas generators scheduled to enter service later this decade.
- SMR progress – the Rolls-Royce SMR unit advanced in Sweden’s competition for a nuclear technology partner, while UK and US regulatory work continues, highlighting the longer‑term optionality of small modular reactors.
The company also stressed its ongoing focus on cost efficiency and simplification, pointing to the opening of a global capability and innovation centre in Bengaluru, India, to support group‑wide business services.
£1bn share buyback nearing completion
Rolls-Royce is complementing operational progress with shareholder returns.
According to the trading update, the group had completed £0.9bn of its £1bn share buyback by the end of October 2025. [21]
Regulatory filings over recent days show the programme continuing:
- On 14 November 2025, Rolls-Royce repurchased more than 1.6m shares across London Stock Exchange and alternative venues at a volume‑weighted average price just above 1,093p. [22]
- On 17 November 2025, a further 503,000 shares were bought back at an average price of roughly 1,094p, bringing total repurchases since programme launch to almost 102m shares at an average of about 935p per share. [23]
These bought‑back shares are being held in treasury, gradually reducing the free‑float share count and supporting earnings per share over time, assuming profit targets are met.
Analyst consensus and valuation snapshot
Putting all of this together, what does the market currently see?
- Broker stance: Around 18 analysts tracked by LSEG rate Rolls-Royce at “buy” on average, with a median target around 1,245p according to today’s Reuters rundown. [24]
- Fresh targets: RBC’s 1,275p and Morgan Stanley’s 1,280p targets are slightly above that median, implying high‑single‑ to low‑double‑digit upside from today’s price. [25]
- Valuation metrics: RBC’s projection of a 4.4% 2026 free cash flow yield, compared with about 3.2% for peers, suggests the stock is not obviously expensive on cash generation despite its strong run, assuming management hits its numbers. [26]
Of course, the bullish case rests on continued execution: further improvements in engine durability, on‑time delivery of new products, and successful conversion of SMR and other innovation projects into commercial returns.
What today’s news means for Rolls-Royce investors
For followers of Rolls-Royce Holdings plc (RR.L), 18 November 2025 brings a mix of reassurance and challenge:
Positives
- Strong buy‑side endorsement from RBC and Morgan Stanley reinforces confidence in the turnaround and long‑term cash generation.
- The Etihad engine deal at Dubai Airshow adds another blue‑chip customer commitment to the Trent 7000 and Trent XWB‑97 platforms, expanding the installed base that underpins high‑margin aftermarket revenue.
- The latest trading update confirms that civil, defence and power systems demand is tracking in line with ambitious 2025 guidance.
- The share buyback is close to completion, providing ongoing technical support for the share price.
Risks
- Emirates’ reluctance to order the A350‑1000 keeps attention firmly on Rolls-Royce’s engine durability in hot‑and‑harsh environments; a failure to deliver planned improvements by 2028 could cap future Gulf opportunities.
- After a near‑doubling of the share price this year, expectations are much higher, leaving less room for error if engine upgrades slip or markets cool. [27]
For now, though, the balance of today’s news tilts in Rolls-Royce’s favour: analysts are raising or initiating bullish targets, airlines are ordering more Trent‑powered wide‑bodies, and management is reiterating – not cutting – its profit and cash flow guidance.
As always, this article is informational only and does not constitute investment advice. Anyone considering investing in Rolls-Royce or any other stock should do their own research and, if needed, consult a qualified financial adviser.
References
1. www.rolls-royce.com, 2. www.investing.com, 3. www.tradingview.com, 4. www.tradingview.com, 5. www.tradingview.com, 6. www.tradingview.com, 7. www.investing.com, 8. www.investing.com, 9. www.investing.com, 10. www.tradingview.com, 11. www.streetinsider.com, 12. newsable.asianetnews.com, 13. www.airbus.com, 14. www.rolls-royce.com, 15. www.rolls-royce.com, 16. www.bloomberg.com, 17. www.bloomberg.com, 18. www.thenationalnews.com, 19. www.rolls-royce.com, 20. www.rolls-royce.com, 21. www.rolls-royce.com, 22. www.stockopedia.com, 23. www.investegate.co.uk, 24. www.tradingview.com, 25. www.tradingview.com, 26. www.investing.com, 27. www.tradingview.com
