(Bloomberg) -- This year’s best performer in the Europe Stoxx 600 Index has the scope to triple in the best-case scenario, according to analysts at UBS Group AG.

Rolls-Royce Holdings Plc’s share price could surge to £6 a share, if the UK jet-engine maker achieves profit margins closer to those of France’s Safran, analysts Ian Douglas-Pennant and Kseniia Maslova wrote in a note.

UBS’s upside scenario would require Rolls’s civil aerospace unit achieving 16% Ebit margins by 2026 — versus the bank’s base case of 13%.

The stock was up 2.1% at 206.10 pence as of 1:32 p.m. UK time.

UBS also upped its base case price target to 350 pence from 200 pence a share, a level higher than any other analyst followed by Bloomberg. The bank said improving cash flow at the firm is not appropriately priced into the stock, though it cautioned that the structure of some of Rolls’s older contracts are constraining margins.

Rolls has more than doubled this year, up 120%. The shares plummeted during the Covid-19 pandemic as international travel shut down.

Read: Rolls-Royce Is Free of Sell Ratings for First Time in 17 Years

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