Rolls-Royce manufactures aero, marine and industrial gas turbines for civil and military aircraft. The group designs, constructs and installs power generation systems, transmission and distribution systems, and equipment for the marine propulsion, oil and gas pumping, and defense markets.

According to Surperformance rating, the company is an opportunity for a trading strategy. Indeed, it is a good compromise between its value and its visibility. Moreover, brokers have lately revised upward their revenue estimates and count on EPS of GBP 45.33 for this year.

The security follows a downward trend in the short term, under the GBp 849 resistance area. In the mid-term, the trend is neutral. Rolls-Royce is not likely to continue its downtrend because it is near to the strong GBp 796 support and it is oversold. This level could offer a good point of entry for investors with mid-term strategy. We are very confident on the stock because of company’s fundamental. We fix a target price at Gbp 865 and then GBp 890. A stop loss will be placed GBp 771.