BofA Cuts Rolls-Royce Price Objective Amid Lower Flight-hour Expectations; Forecasts Updated

07:36 AM EST, 11/09/2026 (MT Newswires) -- BofA Global Research lowered its price objective for Rolls-Royce Holdings (RR.L) to 16.25 pounds sterling from 18.50 pounds as it reduced its flight-hour expectations for the company amid a renewed slowdown in Middle East traffic and continued high fuel prices. "We lower our 2026 large-engine flying-hour assumption to 113% of 2019, below Rolls-Royce's 115-120% guidance and consensus at 116%, reflecting weaker Middle East traffic and pressure on older widebody fleets from high fuel prices. We also increase retirement assumptions across the RB211, Trent700, Trent 800 and Trent 900 fleets to c.150 engines p.a. over 2026-31," analysts wrote in a Monday note. "Alongside more cautious Power Systems assumptions due to risk over high speed engine overcapacity mid-term, we lower our 2028-30 FCF estimates 6-9%." The research firm also cut its underlying EPS estimates for the British aerospace and defense company for 2026 through 2030, alongside lower revenue and underlying EBITA projections over the five-year period. "Despite higher retirements, we forecast Rolls-Royce's installed large-engine base to grow at a 5.3% CAGR over 2026-31, with installed thrust growing faster at 6.7% as older engines are replaced by higher-thrust Trent 7000/1000/XWB engines. Despite the softer 2026 due to the Iran war, we see a young and growing fleet of engines that will support a recovery in flying-hour growth from 2027 despite accelerating legacy retirements," BofA added, maintaining the stock's buy rating.