Rolls-Royce: Promising Commercial/Defense Aerospace Trends - Raised 2028 Targets (Upgrade)

RYCEY benefits from a growing engine backlog across commercial/defense end markets, along with higher aftermarket contracts/servicing opportunities. The ongoing Iran conflict may trigger near-term noise in commercial flying hours, albeit potentially contributing to higher defense spending trends. RYCEY remains compelling at P/E of 31.81x and 3Y PEG of 0.69x, while offering an excellent upside potential to my long-term price target of $21.90.