Looking back on analyst price targets for Barclays‘ (LSE: BARC) shares, they’ve just kept steadily rising. And the latest (24 June), warms things up even further.

Analyst Michael Christodoulou at Berenberg thinks Barclays deserves a share price of 620p — 21% ahead, at the time of writing. But why such a premium on the stock, and what are the chances of making it?

Why so upbeat?

Barclays shares have soared by a stunning 193% in five years. Much of that’s been down to a severe bank sector undervaluation working its way out. But the future now has to rely on the bank’s performance over the next few years.

The Berenberg update says Barclays’ growth in shareholder returns still has some way to go, and that it’s still on an attractive valuation. We’re looking at a forward price-to-earnings (P/E) ratio of 10 at the moment. And given that UK banks tend to trade at around 30%-50% below the FTSE 100 average, that seems probably about right to me.

But a lot depends on the outlook. And on that score, analysts forecast a 75% jump in earnings per share between 2025 and 2028. That would bring the P/E down to seven by then.

More on returns

There’s more to it than P/E valuations, of course. And at first-quarter time, both returns and liquidity looked very solid…

Barclays delivered another solid quarter with a 13.5% [return on tangible equity or RoTE] in Q126, and double-digit returns in all our businesses … We remain confident in delivering all our financial targets across a range of environments. This includes greater than 12% RoTE in 2026 and greater than 14% RoTE in 2028.

CEO CS Venkatakrishnan, Q1

And now, Christodoulou’s note suggests even better. It forecasts seeing a 2027 RoTE as high as 14.3%. If Barclays can offer upbeat guidance, and then beat it like this, I’m thinking the Berenberg target might come good.

Not unanimous

Before I get too excited, not all analysts agree — and the current average price target stands at 551p. That would suggest Barclays’ shares are in for something like a 7.5% rise, which is still positive. But it also supports the idea that bank shares really do deserve to be valued at around their historic discount to the Footsie.

We also face even more economic uncertainty. The odds-on favourite to become our next Prime Minister, Andy Burnham, wants more state control over key industries. And they don’t come much more key than finance. So the possibility of tighter banking regulation has to be real.

What’s my take, then? I think Barclays is very much one to consider based on what I see as a strong long-term outlook for the banking sector. But investors might prefer to join me in waiting to see what the next few months have to offer — starting with first-half results on 28 July.

Should you invest £5,000 in Barclays Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Barclays Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Barclays shares could soon soar another 21%, according to the latest price target appeared first on The Twelfth Magpie.

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Rightmove (LSE: RMV) has just been demoted to the FTSE 250 in June, but it could be a candidate for one of the quickest bounces right back into the FTSE 100. The review happens every quarter, with top-tier stocks that have fallen in value replaced by leaders in the mid-cap index.

And if one broker is to be believed, Rightmove could soon move right back up again. That broker is RBC Capital Markets — specifically managing director Anthony Codling — who set a 765p target on the stock. From the price at the time of writing, that could mean a gain of around 80%!

We’ve had a few recent broker notes, however, that are less enthusiastic about Rightmove’s near-term future.

Goldman Sachs, for example, puts a 516p price on it — only about 18% ahead. And JP Morgan thinks the shares could fall to 404p. Analysts do differ over where they think share prices are likely to go. But we’re seeing a hefty divergence here, so what’s it all about?

Move over, ChatGPT?

Perhaps surprisingly, the disagreement is all about AI. And it was triggered by Rightmove’s investor day last November…

AI is now becoming absolutely central to how we run our business and plan for the future. We are already working on a wide range of exciting AI-enabled innovations for the benefit of our partners and consumers, and see vast potential utilising our leading reach and connected data. We are investing to accelerate our capabilities, which we are confident will create an even stronger platform and higher-growth business over time. We aim to further advance our leading digital position in the UK property ecosystem.

— CEO Johan Svanstrom, 7 November 2025

Since then, a number of brokers have been spooked by the risk — and by competition from more general AI services like chatbots. They started to downgrade their recommendations. A sell-off by investing institutions followed. And the Rightmove share price has now fallen 45% in the past 12 months. Its current market cap of £3.2bn is just not up to FTSE 100 levels.

An overreaction, much?

Some analysts, though, think the fear stemming from AI ambitions is overblown — and that Rightmove is now undervalued.

At the time of that 765p price target, RBC’s Codling said “Mortgage rates may be high and the geopolitical climate uncertain, but our fascination with property remains and when people want to look for, or just at, property they turn to Rightmove“.

So what’s my take? The risks seem clear enough here. The future of AI is potentially very exciting, but also more than a bit scary. And I reckon it’s likely to lead to some big winners… and some big losers.

I can see two contrasting options for services companies like Rightmove. Either embrace the inevitable rise of AI, or risk being swept aside by it. Bold investors might see wisdom in Rightmove doing the former and consider getting on board. Me? I’m going to wait for first-half results due on 31 July.

Should you invest £5,000 in Rightmove Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rightmove Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post This FTSE 250 stock could storm back into the FTSE 100 with an 80% rise, 1 broker says appeared first on The Twelfth Magpie.

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Lloyds Banking Group (LSE: LLOY) shares have had an up-and-down year so far in 2026. They peaked at over 114p in early February, then fell back below 88p near the end of March. And at the time of writing, Lloyds is hovering around 110p.

But the stock’s five-year record with a rise of over 130% has been spectacular, and a number of commentators — including me — think we could now be in for a good spell of steady earnings growth.

A transition point

It was legendary investor Ben Graham who pointed out that emotion can drive short-term stock prices, but that rationality wins through in the long term — and I see exactly that happening at Lloyds. It had been seriously undervalued as a victim of negative sentiment, but investors are now looking at real long-term potential.

Factors that could sway Lloyds’ shares by 2027 include…

• Actual results from Lloyds between now and then.
• Broker forecasts out as far as they go.
• What a fair valuation for a domestic bank should be.
• Interest rates, driven by the UK economy.
• Political events, with a new Prime Minister on the scene.

We can get a bit of a handle on some of those, assisted by the large number of analysts offering their opinions on Lloyds.

The next few years

What about the economy? My take is that we really can see the outlook finally lifting. The problem is, I’ve felt that way before — but I really am more optimistic this time.

Some shareholders worry about falling interest rates. But I expect the effect is largely neutral overall, with higher mortgage demand offsetting a tightening of Lloyds’ net interest margin. Other than that, the economy’s largely guesswork — even for economists.

So lets turn to probably the best set of data we have at hand — the next few years of analyst forecasts. Here’s how the experts see things lining up for Lloyds…

So what’s the verdict?

My take on a 2027 price for Lloyds’ shares hinges on where I think a fair price-to-earnings (P/E) bank valuation might lie. Traditionally, bank shares have lagged the FTSE 100 average. That’s partly because the sector is cyclical and highly regulated. And the Footsie average is also pulled up by higher-valued growth stocks.

Typically, we’ll see a 30%-50% discount compared to the index, largely reflecting market sentiment. I reckon sentiment is improving — and for 2027 I think a P/E of 10 could be about right. That would put Lloyds’ shares at 118p, only 7.2% ahead of the time of writing. But it could also mean a 136p share price by 2028, up 23.6% from today.

Earnings and dividend growth could push the valuation higher, though economic uncertainty could hold it back.

For me Lloyds is a Hold, and I’ll see how first-half results due in July shape up before I think about buying more. Investors considering a purchase might benefit from the same approach.

Should you invest £5,000 in Lloyds Banking Group Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Lloyds Banking Group Plc made the list?

Alan Oscroft owns shares in Lloyds Banking Group.

The post Here’s how much I think Lloyds shares will be worth by the end of 2027 appeared first on The Twelfth Magpie.

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Many investors, especially beginners, think a penny stock is the thing to go for. After all, if you find one valued in pennies when some share prices are up in the tens of pounds, you can make a mint, right?

It can happen, and plenty of penny stocks over the years have rewarded shareholders with multi-bagger returns. But many have been wipeouts.

The biggest possible loss is still 100% — the same as with any share, whatever the price. Narrowing the search to companies with long-term track records and positive broker forecasts can help. And I think I might have found a cracker…

I’m talking about UK brick maker Michelmersh Brick Holdings (LSE: MBH), with a share price around 77p at the time of writing and a market-cap of £70m.

Who needs housing?

Michelmersh shares are down 32% in the past 12 months, and 45% over five years. Why? It’s about bricks, it’s about building, it’s about houses, and it’s about the property market.

They’ve all been through a torrid time. A company with a tiny market-cap often doesn’t have the resources to keep it going through the worst days — and that’s a fear. So one of my key criteria for a potential penny stock pick is: low debt when times are good, as debt can kill when things turn bad.

Fortunately, Michelmersh doesn’t operate with a huge amount of debt. Analysts expect £6m-£7m average over the next three years. And that’s only around 10% of 2025 full-year revenue.

Earnings growth

There’s a 75% rise in earnings per share forecast for 2026. And between 2025 and 2028, analysts expect a 113% jump!

The dividend’s expected to grow by a modest 7% over the same three years, which isn’t huge. But it still suggests an attractive 5.9% yield.

So we have a penny stock coming through a tough patch, with a brilliant return to earnings growth on the cards. And there’s a seriously nice potential dividend to be had too. What’s not to like?

Tough trading

Well, full-year results in March showed an 18% fall in adjusted profit before tax. Why? The company said it’s due to:

…timing of capital improvement activities, interruption caused to production through the relocation and closure of Watlington site, and market challenges in the UK and in Europe.

FY 2025 results, 24 March

At the time, Chair Tony Morris added: “We enter the new financial year with continued uncertainty around momentum in the wider UK construction industry.”

We just don’t know how long the uncertainty will continue — it’s gone on far longer than expected, I’d say. And I suspect that could keep Michelmersh shares depressed for a while longer.

Multi-bagger, or bust?

I doubt we’ll see millionaire-tomorrow gains from Michelmersh. But at the same time, I rate its chances of going bust as low. It isn’t a high-risk/no-profit, ‘jam tomorrow’ hope. But I see it as a long-term growth-plus-dividend candidate for my next ISA buy — and investors might do well to consider joining me.

After all, humans will need places to live for generations to come, and they tend to be made of bricks.

Should you invest £5,000 in Michelmersh Brick Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Michelmersh Brick Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post £500 buys 643 shares in this penny stock, expected to grow earnings 75% this year! appeared first on The Twelfth Magpie.

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AI companies just experienced a sell-off, with Space Exploration Technologies (NASDAQ: SPCX) stock — or SpaceX to its friends — among the fallers. The price soared after IPO on 12 June, opening at $150 — 11% ahead of the $135 initial offer price. And then it quickly climbed another 50% to hit a high of $225.64.

But a quick reverse took the price down to $147.11 on Tuesday (23 June), for an all-time low — though all-time does mean just 12 days in this case. The 34.8% slide from the peak technically falls into crash territory. Investors fear worse to come. So what should Scottish Mortgage Investment Trust (LSE: SMT) shareholders do now?

AI jitters

The tech stock rout that hit Wall Street appeared to be led by several factors…

• Doubts over AI spending sustainability
• Concerns over the true profit potential of AI
• Momentum simply running out of steam

If this does mark the start of a downturn, the SpaceX launch — which raised raised $85.7bn — might have been timed to perfection.

Nvidia and Intel also felt a fair bit of the pain. And Elon Musk’s Tesla is now down 10% over the past month.

I’m genuinely excited about SpaceX, and I’ll tell you the number one thing I like about it. The company’s rockets are behind nearly 80% of all payload mass lofted into orbit globally. That’s a cracking bedrock to support the rest of the company.

The long-term potential of AI and robotics? That ticks boxes too, but it’s still a big unknown. And unlike the profitable launch business, it’s burning through cash.

Putting a human colony on Mars? I doubt that’ll happen in the lifetime of anyone breathing today. And I haven’t the first clue how it could make a profit. It’s the kind of thing for government agencies to throw trillions at. Commercial interests should have greater potential opportunity once the high-risk ground has been broken.

So what about SMT?

So, on to fears for Scottish Mortgage. Its share price has also dropped. At the time of writing, it’s down 7.4% in the past five trading days. The reason seems obvious. On the latest valuation, it has 17% of shareholders’ assets tied up in SpaceX — which it first invested in privately back in 2018, at well below today’s price.

Interestingly, the share price hasn’t kept up with the investment trust‘s net asset value (NAV). And Scottish Mortgage shares can be bought at a 14% discount to the latest NAV at the time of writing. Hmm, maybe it’s time to think about topping up and effectively nabbing some SpaceX stock at below market value rather than considering selling?

What will I do? Neither. When I bought my shares I did so as a way to get some tech stock exposure in my ISA, but in a nicely diversified way. And I still want that. I expected (and still expect) plenty of share price volatility. But with my long-term horizon, I’m fine with that.

So what should investors do about Scottish Mortgage shares now? Maybe think about waiting until the current mini-panic works itself out, and then consider buying. And holding, of course.

Should you invest £5,000 in Scottish Mortgage Investment Trust Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Scottish Mortgage Investment Trust Plc made the list?

Alan Oscroft owns shares in Scottish Mortgage Investment Trust.

The post As SpaceX stock plunges below its opening price, is it time to dump Scottish Mortgage shares? appeared first on The Twelfth Magpie.

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Greggs (LSE: GRG) is famous for its hot food, but it’s the shares that need warming up. And a couple of broker recommendations suggest it could happen soon.

The Greggs share price has slumped 50% since August 2024. Back then, the country was in the grip of some sort of sausage roll mania — and everyone wanted to fill up on the shares too. But the subsequent descent was as scary as the initial ascent was exciting.

Greggs shares have been flat for most of the past 12 months, though. So has the negative market sentiment finally bottomed? At its highest point in the past decade, Greggs’ price-to-earnings (P/E) ratio climbed to over 28. But now that it’s back down to a forecast 13, I really think we could be seeing a turning point.

Share price targets

Of the most recent brokers offering price targets for Greggs shares, investment bank UBS is the most upbeat with 2,200p on the stock — and Berenberg has set a 2,090p target. Those are 38% and 31% ahead of the price at the time of writing respectively.

There’s a lowball 1,330p from Deutsche Bank. But four of the five I can find with recent updates expect the price to rise. Curiously, these are all reiterations. So what’s likely to get the market to take note and potentially trigger a price rise?

First-half results are due on 29 July. And after a positive 2025, I suspect investors could just be waiting to see how 2026 is going. FY 2025 saw sales rise by 6.8% to £2,151m — but underlying profit before tax fell by 9.4%.

So maybe investors just need to see that profit fall arrested, with a hint of a return to growth. And as it happens, that’s what forecasters expect for the full year. They predict a modest 3.6% rise in earnings per share this year. And we could see a 17% increase between 2025 and 2028.

Tighter pockets

Soaring inflation and its effects on snacking expenditure finally caught up with Greggs. And now we’re looking at a company valued probably very similarly to a high street sandwiches and bakery chain… so about fair value, in my view. A P/E now a bit below the FTSE 100 average and a 4.2% dividend yield above average? That’s starting to tickle my taste buds.

But one thing holds me back. Greggs did a great job of keeping prices rises to a minimum during the worst of the inflation storm. My local branch is on the same block as other food outlets — and they all put prices up a fair bit higher than Greggs.

My fear is that there’s a backlog of higher costs still working its way down to shop counter level. And Greggs shares might not look safe until that’s worked its way out.

I’m encouraged by broker optimism, but I’ll wait and see. I suggest other investors might want to get their eyes on those upcoming interim results before considering buying.

Should you invest £5,000 in Greggs Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Greggs Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Here’s how high these brokers think Greggs shares could soon climb! appeared first on The Twelfth Magpie.

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I’ve traditionally focused on the FTSE 100 to find candidates for my Stocks and Shares ISA. And I generally go for picks with strong long-term dividend prospects — then I reinvest my dividends every year.

But the top UK index now averages only 3% in dividend yields. And I see what I think could be some cracking long-term ISA stocks in the FTSE 250. I’m going to highlight two of them today.

Photos and Laundry

ME Group International (LSE: MEGP) is in the business of photo booths, laundry machines, vending machines, and other automated selling equipment. Investors have been offloading the shares, pushing the price down. And the big question for me is — what caused its 27% drop on 1 June.

An obvious answer is that there was a profit warning that day due to weakening revenue, “particularly in the French photobooth and laundry businesses.” Management blamed it on “a shift in consumer spending patterns driven by lower consumer confidence due to the ongoing conflict in the Middle East.“

The board also downgraded its full-year profit before tax guidance to between £69m and £74m.

This disappointment comes on the back of problems with regulatory changes in Germany, meaning its photo booths aren’t suitable for passport photos — a problem that new machines will hopefully solve.

So what do I think? I feel bearish investors have overreacted. The current dangers are clear. But a forecast dividend yield of 8.4% and price-to-earnings (P/E) ratio under eight makes me believe there’s a fair bit of safety in today’s valuation.

Property casualty

Primary Health Properties (LSE: PHP) has been recovering some of its five-year share price slide in the past couple of years. But we’re still looking at a robust 7.9% forecast dividend yield.

It owns and operates medical facilities, including medical centres and GP clinics. And it counts the NHS as a major long-term client. I’d say that brings benefits and risk. It does mean dependable long-term clients. But a company like this is also at the mercy of NHS spending on privately-owned facilities.

I reckon that’s probably the reason for the modest investor interest. At the current price, the shares trade on a discount to net asset value close to 20%.

Primary Health is structured as real estate investment trust (REIT), which offers tax concessions on qualifying rental income. The other side of this is that a trust must distribute at least 90% of that income to shareholders. Partly as a result, 2026 is expected to bring the 30th consecutive annual dividend rise.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Time to buy?

These both carry their own risks. But the risks are very different. And the two companies are in very different sectors. Together, that leads me to see them as strong possibilities to consider for a diversified Stocks and Shares ISA.

Primary Health Properties in particular has long been on my list of potentially perfect candidates. It just hasn’t quite made it to the top.

Should you invest £5,000 in ME Group International right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if ME Group International made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post With yields of 8.4% and 7.9%, are these FTSE 250 shares perfect for a Stocks and Shares ISA? appeared first on The Twelfth Magpie.

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With the average dividend yield of the FTSE 100 only around 3% at the moment, passive income investors have a tougher job searching for long-term cash generators. Legal & General still leads the top index with a forecast 7.6%. And there are a few up in double digits in the FTSE 250 , including Greencoat UK Wind (LSE: UKW) on 10% — though smaller stocks are typically riskier.

I’ve put together a few from the two indexes that I think long-term investors should consider. But as well as a good dividend yield, I also want cover by earnings and dividend growth forecast over three years.

Passive income picks

In my view, those all show attractive passive income characteristics. And if we swapped out one of the FTSE 100 insurers for one in a different sector, we’d be looking at a decent bit of diversification too. It’s looking like a candidate for the perfect passive income starter portfolio.

Income investors often caution against just picking the biggest dividend yield. A lower yield can be worth a lot more over the long term than an immediate here-today-gone-tomorrow high yield.

But today I’m taking a closer look at… yes, Greencoat UK Wind, with its huge forecast 10%. However, I still wouldn’t buy it just because of the yield. No, I’d want to know what’s behind it and whether the dividend is sustainable.

12 years in a row

The company’s aim is to provide investors with an annual dividend that increases in line with CPI inflation while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow.

— FY 2025 results

As well as a 12th consecutive year of dividend increases in line with or ahead of inflation, Greencoat returned £109m via share buybacks in the period.

So, a nice fat yield, cover by earnings, and management committed to keeping the dividend growing. Surely we can’t have it all this good? Well actually, no.

Greencoat faces a problem, though it might only be a short-term one. And I think we could still be looking at a compelling investment case. Asset values of the company’s wind farms have been falling — hit by rising interest rates used to value them. And the company is in the process of selling off some assets “to protect and build shareholder value” — in the words of chair Lucinda Riches.

Battling headwinds

Whether dividend rises can be maintained is a question we need to think about. Right now, cash generation seems to be strong. But any threat to it, or the asset-value problem continuing much longer, could lead to further flatlining for the share price.

But Greencoat UK Wind is very much on my list of passive income candidates. And I reckon income investors should consider it.

Should you invest £5,000 in Greencoat Uk Wind Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Greencoat Uk Wind Plc made the list?

Alan Oscroft owns shares in Aviva and Persimmon.

The post Are these the best UK shares to buy for passive income right now? appeared first on The Twelfth Magpie.

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June has brought upgraded broker price targets for Rolls-Royce Holdings‘ (LSE: RR.) shares, and they’re heading ever upwards.

Analysts at Bank of America have repeated their Buy stance on Rolls, and set a price target at 1,740p. And that’s 24% ahead of the closing price on Monday (22 June). So what might power this next upward step?

Driving further growth

The Rolls-Royce story of the past few years has been one of recovery. From near wipe-out when the pandemic all but halted aviation, to a thriving growth stock generating cash hand over fist — few companies have turned things round so well, so quickly.

But we’re past that stage. And analysts and investors alike are basing their valuations on future steady growth. But while some have their dreams fixed on a profitable future for those small modular nuclear reactors (SMRs), Bank of America (BoA) doesn’t. And it’s not all about today’s defence premium either.

No, BoA has its focus firmly on good old flying hours…

Rolls-Royce reported large engine flying hours at c.115% of FY19 levels in 1Q26, which reflected a strong Jan-Feb period, followed by a softer March that improved sequentially through the month. Into 2Q, our data point to a continued recovery: April and May have sequentially improved versus March.

Bank of America research note

So flying hours are back significantly above where they were before the pandemic, even in the face of widespread Middle East turmoil. It’s been a cracking recovery.

They’re not alone

Berenberg, in its most recent update, noted that Rolls-Royce’s ‘best-in-class’ engine fleet is the youngest among big suppliers (adjusted for capacity). And it’s seen the biggest jump in engine hours among European competitors. Rolls engines also command the biggest share of the widebody market, which shows better fuel-cost resilience.

We revise up our forecast for Rolls-Royce’s large-engine EFH in 2026 by 1 [percentage point] to 6%, reflecting the strong recovery since the US-Iran conflict began.

Berenberg research note

Berenberg however, only has a 1,430p price target on Rolls-Royce shares, just a fraction ahead of Monday’s close. Still, these are short-term targets. And they do seem to keep inching upwards.

Bridging the gap

My main fear has been that the stock valuation might just have too much future growth built into it. The future for nuclear reactors looks rosy, but they’re not expected to deliver profits before 2030. So what can fill the gap between conventional aviation growth and SMR profits coming online?

Well, it sounds like there might not be a gap. Analysts generally forecast solid earnings growth out at least to 2028, and that’s on the back of existing business.

Valuation

The Rolls-Royce price-to-earnings (P/E) ratio of 38 for the current year is my other concern. Though forecasts are optimistic, I’m not sure there’s enough safety margin in that. It’s a fair bit higher than Nvidia‘s multiple of 22 — and Nvidia leads the world in AI chips.

So I’d say Rolls-Royce shares are definitely worth considering for their long-term growth prospects. But I think investors should be prepared for some medium-term volatility.

Should you invest £5,000 in Rolls-Royce Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls-Royce Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post Rolls-Royce shares could be set to climb a further 24% says this broker appeared first on The Twelfth Magpie.

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Back in 2023, Diageo (LSE: DGE) issued a profit warning after seeing falling sales in Latin America, and the share price started to slide. And slide, and slide…

But this is one of the world’s leading booze makers, responsible for many global headline brands — Johnnie Walker, Guinness, Smirnoff, Rumple Minze… it’s got ’em all.

Good money after bad?

It’s tempting to buy into Diageo just because of the share price slump. And for investors who already own a stake, the urge to double down must be strong.

After all, the world isn’t likely to give up on booze any time soon — I’m not a gambler, but I might take a wager on that. And much of Diageo’s troubles stem from global inflation, tariffs and trade wars, and the resulting drive to seek out cheaper alcoholic beverages.

When pockets are squeezed, Aldi’s Highland Earl (£12.49) can be a more attractive proposition than Johnnie Walker Black Label (£36 at Tesco). So does it make sense to Buy, and Hold until the economy gets better?

It’s vital to keep an eye on valuation. And even after the big price fall, we’re still looking at a forecast price-to-earnings (P/E) ratio of 13 for this year. That’s not obviously screaming cheap. So is it possible Diageo shares have just been overvalued, and we’ve had a needed correction?

New boss to the rescue

I don’t think the headline P/E reflects Diageo’s true worth either. There’s around £20bn net debt on the books against a market-cap of £34bn. On that basis, the valuation still looks a bit premium to me. And one of the tasks facing new CEO Sir Dave Lewis — he of Tesco turnaround fame — is to convince investors the stock deserves it.

Sir ‘Drastic’ Dave had this to say at Q3 update time…

North America remains our biggest challenge, where market conditions are soft and our offer needs to be more competitive … Progress on the re-design of our new strategy and the shaping of a more competitive operating framework is well underway.

CEO Sir Dave Lewis, 6 May 2026

Judging by his past, that new strategy is expected to be tough. Employees around the world are reportedly waiting nervously for the cost-cutting/jobs axe to fall.

So what should investors do?

It’s tempting to buy Diageo shares just on the back of Lewis’s track record. Anyone who invested early in his reign at Tesco has done well out of it — even with that recovery being derailed for a couple of years by the pandemic.

A look at the Diageo share price suggests investor sentiment might be turning. Since March’s low, it’s up around 14%. It’s dangerous to think in terms of timing, for sure — but we might just be at a pivot point now.

So should investors consider buying Diageo now? Consider, yes, I’d say definitely. Will I buy? The temptation is strong. But weighing valuation against debt means I need to observe and think some more. I’ll wait.

Should you invest £5,000 in Diageo Plc right now?

When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Diageo Plc made the list?

Alan Oscroft does not hold any positions in the companies mentioned.

The post How much longer can the Diageo share price stay this low? appeared first on The Twelfth Magpie.

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