Barclays upgrades Rolls-Royce to 'overweight'

Barclays has raised its stance on engineering giant Rolls-Royce from 'equal weight' to 'overweight' after recent weakness in the share price.

"Rolls-Royce has derated ~10% in the past month (vs FTSE 100 -3%), in our view a function of de-grossing and longer cycle pressure/macro economics," the bank said in a research report on Tuesday.

This, it said, "presents a buying opportunity" ahead of the company's 28 November capital markets day, which Barclays said could be a "catalyst" event.

The bank has hiked its price target for the tock from 239p to 270p, representing around 30% upside from Monday's 202p closing price.

The stock was up 4% at 209.9p in early deals on Tuesday.