Proactive Investors - Rolls-Royce Holdings PLC (LON:RR) share price might have doubled from last year's low but it still can fly a lot higher, reckons Deutsche Bank (ETR:DBKGn), which upgraded its rating.
Seeing a "recovery in view", analysts raised their rating to 'buy' from 'hold' with their target price hiked to 136p from 90p.
The shares closed yesterday at 111.4p and were up 1.5% to 113.44p in early trading on Thursday.
The changes come as "we have gained greater clarity regarding Rolls-Royce's civil aerospace aftermarket recovery", said analyst Christophe Menard.
China's reopening is one of two "game-changing events", along with the recovery in international travel last year.
These factors provide increased confidence in a "marked rise" in maintenance, repair, and overhaul (MRO) activity on the Airbus A330, for which Rolls provides its Trent 700 engines.
Also, in the FTSE 100 group's other businesses, Defence and Power Systems, these have been "performing well for some time, but not enough to compensate for the profitability and FCF shortfalls in Aerospace".
However, Menard said the "current, more positive environment, coupled with the appointment of a new CEO, should mark 2023 as a key milestone in the company's transformation".