The blistering Rolls-Royce (LSE: RR) share price recovery shows how an ailing company can skyrocket if conditions are right.
The FTSE 100 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, JP Morgan 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 minimum 10-year view.
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