Rolls-Royce upside in longer-term cash flow, says Oddo

Rolls-Royce is on the verge of a "significant" upturn in cash flow, which analysts at Oddo BHF said should be the sole decisive metric to which investors pay attention.

As the engine maker has "identified and contained" the problems with its misfiring Trent engines, Oddo said the targets to generate £1bn of free cash flow in 2020 and £1.8bn in 2024 were "plausible".

On that basis, Oddo analyst Antoine Boivin Champeux said that would give a value of 1,120p to the shares and so upgraded themto 'buy' from 'neutral'.