RE: Only an Idiot is Selling11 Apr 2024 03:39
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Rolls Royce to the Moon
For Rolls-Royce Holdings PLC (LSE:RR.), even though it was the FTSE 100’s best performing share last year, almost tripling in value as its post-pandemic revival took off on the back of a recovery in airline flying hours, Jefferies said the story does not end there.
A multi-year recovery is predicted by analyst Chloé Lemarié driven by three points: the end of the services contract repricing started last year, the benefit of market-share gains with 35% of the installed base of wide-body aircraft and 50% of the current backlog, and only 16% of the fleet over 15 years old, and the long-term potential to re-enter the narrow-body airline market.
“Rolls-Royce is only in the early stages of its recovery, with almost a doubling of EBIT and free cash flow expected by 2027,” the analyst said, but with the shares trading at a discount to peers.