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.
Aerospace and Defence
10,853.21
16:54 03/05/24
2.24%
237.81
FTSE 100
8,213.49
16:59 03/05/24
n/a
n/a
FTSE 350
4,515.50
16:54 03/05/24
n/a
n/a
FTSE All-Share
4,469.09
17:14 03/05/24
n/a
n/a
Rolls-Royce Holdings
418.10p
16:54 03/05/24
2.85%
11.60p
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'.