Rolls-Royce target upgraded by UBS as cashflow reassures

0
33

Rolls-Royce Holdings PLC (LSE:RR.) has had its price target upgraded by UBS which saw some encouraging trends in the half-year numbers though the broker wants to see more consistent performance.


The new target is 130p up from 119p, which UBS said reflects how the aero-engine maker has managed to contain and correct the civil aerospace cash bleed despite the low level of activity, while there was a good performance and payments in Defence.


Civil Aerospace though needs to deliver over a longer period, especially engine flying hours (EFH).


UBS says it regularly tracks engine flying hours and regards them as a good lead indicator for future receipts and growth drivers.


For both this year and 2022, UBS has lowered its EFH forecast as the Delta variant spread is delaying the reopening of long-haul travel.


UBS now sees EFH at 48% of 2019 levels in 2021 and 65% in 2022 – though 2023 is unchanged at 90%.


A ‘hold’ is the investment view,


Shares today rose by 1% to 111.9p.

LEAVE A REPLY

Please enter your comment!
Please enter your name here