Rolls Royce Share Price Forecast - Buy, Sell or Hold?

Jitanchandra Solanki
15 Min read

British engineering giant Rolls Royce suffered a devastating share price impact over the pandemic. The share price is at historic lows begging the question ‘are Rolls Royce share a good buy or not?’ 

In this guide, we go through the research for a Rolls Royce shares buy or sell decision, a Rolls Royce share price forecast for the short-term and long-term, as well as how to buy Rolls Royce shares using a state-of-the-art investing platform and with low commissions.   

Rolls Royce Share Price Forecast - Buy, Sell or Hold? 

If you’re looking for a quick Rolls Royce shares buy or sell decision then let’s have a look at what the majority of analysts have as a Rolls-Royce share price forecast. Below is a screenshot of the average analyst ratings from the Wall Street Journal. 

Ratings fall under the following categories: buy, overweight, hold, underweight and sell. At the time of writing, the overall consensus regarding Rolls-Royce share price forecast is to hold. However, there is a developing trend in the data that is likely to be interesting to investors. 

Source: WSJ, 10 August 2021 

The analyst ratings show that from three months ago to now, there have been fewer analysts rating Rolls-Royce share price as a sell and more into the buy category. When trying to determine a Rolls-Royce Shares buy or sell decision, it’s clear to see more analysts are shifting to the buy side.  

However, this doesn’t mean to say the price will go up immediately. This is a long-term trend we can see in the data and investors would take other factors into consideration as we go through further down this article.  

Rolls Royce Share Price Forecast in 12 Months 

What is more interesting is the actual Rolls Royce share price forecast for the next 12 months. Currently, the 17 analysts offering a 12-month price target for Rolls Royce Holdings PLC, show a median target of 120.00 with the highest estimate at 162.00 and the lowest estimate of 52.00.  

Source: FT, 10 August 2021 

During the first six months of 2021, the average Rolls Royce share price was around 105.00. Both the median target and highest estimates from the 17 analysts above represents the potential for further upside over the next 12 months.  

Whether the share price moves to this level quickly or falls further before reaching this target requires a more detailed analysis of the company and its share price history. Further down we go through Rolls Royce shares buy or sell research and how to access free premium analytical tools to help with knowing when to invest in the stock market.  

How to Buy Rolls Royce Shares 

If you are interested in investing in the Rolls Royce share price then you can do this from a variety of different accounts that Admirals has to offer, such as: 

  • Invest.MT5 Account. This account allows you to buy real shares and ETFs from 15 of the largest stock exchanges in the world.  
    • Enjoy a low minimum transaction amount of 1 GBP with just 0.1% commission on Rolls Royce shares! 
  • Trade.MT5 Account. This account allows you to buy and sell CFDs (Contracts for Difference) on more than 4,000+ instruments covering shares, indices, commodities, currencies and more.   
    • Enjoy a low minimum transaction of 1 GBP with just 0.1% commission on Rolls Royce shares! 
    • Trade long and short! With CFDs, you merely speculate on the price movement of the market rather than owning the underlying shares.  
    • Trade on margin! For retail traders, you can open a position in Rolls Royce with just 20% of the full investment needed to be held as margin. This can amplify profits and losses so be careful! 
  • Demo Account. You can open an Invest.MT5 and Trade.MT5 demo accounts for FREE and test out all of the features for yourself until you are ready to go live.   

Regardless of which account type you open, you will have instant access to the world’s most popular trading platform MetaTrader 5. This can be used on desktop, web or mobile.  

If you want to learn how to buy Rolls Royce shares then read the step by step process on how to do so below.   

1. Login to the Admirals Trader’s Room. Here you can manage and access all of your trading and investing accounts, access the Admirals Wallet for fast deposits and withdrawals, see your trading history and access premium analytical tools.  

2. From the Trader’s Room, click on the Trade icon next to the account you want to trade on (Trade.MT5, Invest.MT5, Demo, etc). This will then open the MetaTrader 5 web platform.  

3. To view and select the instrument you want to trade on, right-click in the Market Watch window and select Symbols. Here you will be able to see all of the instruments available to trade on in your account type.  

Source: Admirals MT5

4. Once you’ve selected your instrument click Show to add it to your Market Watch list. You can also groups of markets as well by clicking the group in the left column. For example, clicking Show on UK (LSE) will show all of the shares available to trade or invest listed on the London Stock Exchange.  

5. To view a live price chart of any instrument, click the symbol name in the MarketWatch window and drag it onto the chart. You can add on a variety of technical indicators for chart analysis using the Insert function from the top menu.  

6. If you want to place a trade then you can open the trading ticket by clicking the buy or sell icons in the one click trading feature at the top left of the chart. Alternatively, you can right click and select Trading, then New Order, as shown below.  

Source: Admirals MT5

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Rolls Royce Shares History 

Rolls Royce is a company with a long history. Founded in 1904, the company operates across three core sectors: civil aerospace, defence and power systems. From 2003 to 2014, the aerospace and defence company experienced one of its best periods. The share price rose from an all-time low of around 22.00 to a record high of around 407.00 - a more than 1,950% move higher.  

However, since this record high the company struggled. The share price crashed more than 90% lower from its all-time of around 407.00 to a 2020 low of around 33.20 just after the pandemic.  

Source: Admirals MetaTrader 5, RR, Monthly - Data range: from 1 Jan, 1990 to 10 Aug 2021, performed on 10 Aug, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results. 

In 2017 the company Royce posted its largest ever pre-tax loss of £4.6 billion. This was largely down to a £4.4 billion write-down on failed currency hedges with a £671 million bribery and corruption charge with the US Department and Justice and Serious Fraud Office.  

The Rolls Royce share price is now up more than 200% from the low of 2020 after the company announced cost-cutting measures that have cut its cost base by a third. Now, many investors are asking the question ‘are Rolls Royce shares a good buy or not?’ 

Rolls Royce Shares Buy or Sell Research 

From the analyst ratings discussed earlier on, it’s clear that the Rolls Royce share price forecast over the next 12 months is for it to rise. With a median target of 120.00 and the highest target of 162.00, the stock does become quite interesting as the current share price ranges around 105.00. 

A Rolls Royce share price prediction 2025 may see the company reach the median level. However, this is still many years away. To analyse a Rolls Royce shares buy or sell decision we need to look at the fundamentals, as well as market positioning.  

The Fundamental Picture 

In 2018, a few years before the coronavirus pandemic, Rolls Royce was already in trouble. This is why the company announced a huge restructuring plan. This involved decentralising its civil aerospace, defence and power systems units and removing middle management functions.  

During the coronavirus pandemic of 2020, the company had to accelerate its restructuring plans after the operation shutdown of its civil aerospace unit. Now, the company has cut more than 8,000 jobs worldwide amounting to cutting a third of its cost base.  

The company’s most recent earnings report highlighted the positive impact this has had on the business. Figures showed the company returned to a profit while management highlighted they are confident in the company generating cash by the end of the year.  

The Technical Picture 

Since the sharp drop in Rolls Royce’s share price in 2018, the price has stabilised into a small trading range. This range has developed over a significant portion of the last year. Currently, the moving averages are still angling lower which just confirms the recent downtrend.  

Source: Admirals MetaTrader 5, RR, Weekly - Data range: from 10 Dec, 2017 to 16 Aug 2021, performed on 16 Aug, 2021, at 8:30 am GMT. Please note: Past performance is not a reliable indicator of future results. 

As Rolls Royce is trading at the end of a possible downtrend, the share price is exhibiting more value investing characteristics than growth investing characteristics. The moving averages would have to turn higher for the share price to attract growth investors.   

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Rolls Royce Share Buy or Sell Timing 

However, there are still ample opportunities for educated investors versed in technical analysis. For example, the screenshot below is taken from the Technical Insight Lookup Indicator found in the Premium Analytics section of the Admirals Trader’s Room. 

Source: Premium Analytics, 13 August 2021 

This indicator provides real-time, actionable trading and investing ideas based on some of the most well-known technical price action trading patterns and indicators. Currently, the indicator is showing there are 24 technical events happening on Rolls Royce’s share price over the short-term, intermediate-term and long-term.  

Did you know that you can access this tool for FREE from the Admirals Trader’s Room? 

It’s a great way to help you find technical analysis trading and investing ideas, while also learning more about chart analysis. The combination of fundamental analysis and technical analysis patterns can be very powerful.  

Free analytical tools

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Why Invest in Rolls Royce Share Price with Admirals? 

✔️ Admirals is authorised and regulated by the UK Financial Conduct Authority (FCA) and other well-known financial regulators. 

✔️ Open an Invest.MT5 account to invest in real stocks and ETFs to build a long-term portfolio and a passive stream of income through dividend investing! 

✔️ Invest in stock and ETF CFDs from 15 of the largest stock exchanges in the world from just 0.02 USD per share on US stocks and 0.1% commission on UK stocks! 

✔️ Access real-time, actionable investing ideas through the Premium Analytics Technical Insight Lookup indicator.  

Did you know that you can test ALL of these features by opening a FREE demo trading account? 

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The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”). Before making any investment decisions please pay close attention to the following:  

  1. This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research. 
  2. Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content. 
  3. With a view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for the prevention and management of conflicts of interest. 
  4. The Analysis is prepared by an independent analyst (Jitan Solanki, hereinafter “Author”) based on personal estimations. 
  5. Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis. 
  6. Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed. 
  7. Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
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