JPMorgan raises MTU target to €390 - 'Overweight'

JPMorgan Cazenove has raised its price target on Rolls-Royce to 132 pence from 110 pence

Rolls-Royce shares rose by 1.02% to 103.74 pence during trading on Tuesday

Shares of Rolls-Royce Holdings rose on Tuesday after JPMorgan Cazenove upgraded the aero-engine maker to "overweight" from "neutral" and lifted its price target to 132 pence from 110 pence.

JPMorgan said it now expects Rolls-Royce to deliver "modest positive earnings momentum" over the next few years.

Rolls-Royce shares rose by 1.02% to 103.74 pence during trading on Tuesday.

The company's shares have outperformed the FTSE 100 index over the past year. The FTSE 100 has risen by about 4% over the past year, while Rolls-Royce shares have risen by about 15%.

Rolls-Royce is a British multinational aerospace and defence company headquartered in London, England. The company is one of the world's leading manufacturers of aero-engines, defence systems, and power systems for use in civil and military applications.

JPMorgan's upgrade of Rolls-Royce to "overweight" reflects the brokerage's view that the company is well-positioned to benefit from the recovery in the global aerospace industry.

The global aerospace industry is expected to grow by about 3% per year over the next decade, according to a report by the International Air Transport Association (IATA).

IATA said that the growth in the global aerospace industry will be driven by the increasing demand for air travel in emerging markets.

Rolls-Royce is well-positioned to benefit from the growth in the global aerospace industry due to its strong position in the market for aero-engines.

The company is also benefiting from the recovery in the global defence industry.

Global defence spending is expected to grow by about 2% per year over the next decade, according to a report by the Stockholm International Peace Research Institute (SIPRI).

SIPRI said that the growth in global defence spending will be driven by the increasing threats to security in the world.

Rolls-Royce is well-positioned to benefit from the growth in the global defence industry due to its strong position in the market for defence systems.

Overall, JPMorgan's upgrade of Rolls-Royce to "overweight" reflects the brokerage's view that the company is well-positioned to benefit from the recovery in the global aerospace and defence industries.