RE: New to this game..9 Sep 2020 14:14
read this and hopefully it will help you :-
In response to the company’s earnings results, JP Morgan (JPM) analysts said that it will need to hold a rights issue to support ongoing operations: “In our view, only a very major capital raise would put Rolls-Royce on a sound footing.” The analysts cut their price target from 90 pence per share to 80 pence, maintaining an underweight rating on the stock.
In the company’s base outlook scenario, there will not be a second wave of Covid-19 infections and lockdowns. But in its severe scenario, which is highly plausible, it would need to secure more funding to continue operating in 18 months’ time. The majority of the large international airlines have so far avoided bankruptcy, some receiving government bailouts, but there are expectations that some will ultimately not survive.