The blistering ( ) share price recovery shows how an ailing company can skyrocket if conditions are right. The aircraft engine maker’s shares crashed more than 80% thanks to a bribery scandal, Covid lockdowns, and other nasties. Investors who spotted an opportunity two years ago have made a staggering 518% return.
Latecomers have seen their shares soar almost 150% over 12 months but with Rolls-Royce shares now looking fully priced at 36.19 times earnings, the glory days appear to be over. On 6 August, hiked its Rolls-Royce price target to 535p.
But with the shares trading at 496.8p, that’s growth of just 7.7% from here.
FTSE 100 star The recovery has surely run its course but that didn’t stop me topping up my stake at 455p during the recent market dip. I’m up almost 10% since but that’s neither here nor there. I’m holding with a .
There are risks, of course. CEO Tufan Erginbilgiç has flagged up supply chain issues. Its proposed fleet of mini-nuclear reactors awaits government approval.
A US recession could hit flying hours. If Erginbilgiç undershoots targets, the selloff could be brutal. I’ll stick with what I’ve got and hunt for growth opportunities elsewhere.
I’m wondering if I’ve found one in ailing James Bond car maker ( ). I’ve been waiting for the stock to rev into action for years. Instead, it just seems to go backwards.
At speed. The Aston Martin share price is down a staggering 95.83% over five years.
Even Rolls-Royce didn’t fall that far..