(CercleFinance.com) – Oddo BHF reiterates its ‘outperform’ opinion on Rolls-Royce with a price target raised from 350 to 465 pence, in the wake of a revision of its EPS of around 18% on average over the four next few years for the British engine manufacturer.
‘The milestone reached in 2023 and the favorable momentum of the EFH largely lend credibility to the upper range of medium-term objectives and a rapid return to investment grade. Despite the price appreciation, the valuation is still largely attractive,’ he judges.
The research firm notes that the stock trades on an adjusted 2025 FCF yield of 8.7%, almost twice as high as that of Safran, and a 2025 PE of 17.1 times reflecting a discount of around 26% compared to Safran and generally in line with MTU.
Copyright © 2024 CercleFinance.com. All rights reserved.
The information and analyzes distributed by Cercle Finance only constitute a decision-making aid for investors. Cercle Finance cannot be held responsible directly or indirectly following the use of information and analyzes by readers. It is recommended that any uninformed person consult a professional advisor before making any investment. This indicative information does not in any way constitute an inducement to sell or a solicitation to buy.
Did you like this article ? Share it with your friends using the buttons below.
