Rolls-Royce hit by rare downgrade, as Berenberg cuts to 'sell'

Rolls-Royce Holdings PLC (LSE:RR.) was hit by a rare downgrade on Tuesday, sending shares down by 1.1%. Berenberg has moved the engineer, which was the top performing FTSE 100 stock in 2023, to ‘sell’ from ‘hold’. It thinks some of the drivers of Rolls-Royce’s margin expansion outlook through to 2027, which mostly relate to currency and favourable mix and base effects, will reverse thereafter. “What happens from 2027, when several of these tailwinds should reverse, will be key for the intrinsic valuation, i ...