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Could Hit $1,500 A Share By 2030, Says Ron Baron!

https://cleantechnica.com/2023/02/10/tesla-stock-could-hit-1500-a-share-by-2030-says-ron-baron/

I believe it could atleast touch $500 when the market rallies. Bulls vs Bears fight began again! If the retailers keep buying all the available free float then shorts will not have much left to cover and price will explode!

SprintRS, RR was at £3.36 pre-pandemic without SMRs, SAF engines, electric aviation and now we have all that in place so the valuation of RR should be much higher than pre-pandemic levels. Seeking Alpha analyst has valued RR at £2.36 if RR can maintain £1bn positive cash flow like in the pre-pandemic days. This year travel should recover to 2019 levels and higher so the positive cash flow of £750m - £1bn is achievable with China as well fully open for travel.

Results should be good and Tufan will have now learnt that he needs to present the numbers as good as possible. He will make positive announcements that market will like it even if it is workforce reduction. Any announcement on RR entering narrow body short haul aircrafts will be a big news that will be taken positively by the market. Highlighting Poland's SMR contract, US Army F52s and other big orders like Air India are big positives that market will like it. Considering all the above RR definitely is very much undervalued at the current price.

Important thing is that all these engine orders add to the engine flying hours eventually. In the last update RR reported that the business returned to 65% of 2019 levels and this year there is nothing stopping to reach 80% of 2019 levels or even higher. With rates fixed at 2019 levels and overall business improving the outlook is much better for RR. Pre pandemic the price was £3.36 so current price is way too undervalued. Even with price at £1.50, it is still more than 50% less than pre-pandemic price.

Scramble for RR shares on Monday morning!

I thought today's news about UK avoiding recession narrowly is a good news as the market was worried about recession being worse in UK than any other country. Of course recession forecast is for 2023 and the figures we received today are for last year but IMF will be proven wrong for 2023 too.

The only concern with today's figure is that whether rates would come down or stay at current levels for longer. If inflation figures come down for January, which I think it will then probably BoE may hike rate by 0.25% next month and signal that it is the end and Mrs Mann from MPC should as well calm down with her ask about higher rates.

Poland/Industria selecting RR SMR is a huge win. I expect orders to pour in from other countries.
US Army orders, Air India orders will all help build positive sentiment among the investors.
Remember it is all about the sentiment. To help with positive sentiment, we are entering travel season and that is a big boost for travel stocks like IAG and EZJ and helps RR too!
In the results, once we have positive guidance on the engine flying hours and new projects then that positive outlook will tremendously help with boosting the price to £1.50. GLA

beautiful to watch SP rise slowly every day! Still 3 weeks to go for the results and looks like £1 will be hit much before the results!

We should have been at £1.20 if Tufan had not commented that way. Just need to be glad that such comments were not made on the results day! He now has learnt what happened to market cap because of his comments. I guess market will now take the results positively. He just need to comment positively on results day. I'm anticipating 118p on or day before the results day provided no other wider macro issues. GLA

wow! 89p!
Slap on the face for JP Morgan! Bloody crooks should bury their heads in ****!
I feared last month that JPMorgan would use forces to bring SP down but SP has gone in opposite direction. I sold it when it went down from 79p to 76p and couldn't get back in but bought some at 87p. I guess I will add more first thing in the morning as I can see this going towards £1 within this week and with the results should comfortably stay over £1. ITV had a bloody good quarter so no way the results can be bad and with dividend announcement, it should be the favourite for big funds.

Well done all to those that held on!
Bald still skeptic about ITV? Tom.....

https://www.reuters.com/markets/asia/despite-stupendous-win-adani-india-short-selling-boom-unlikely-2023-02-06/

Interesting read....Wish our UK govt can do the same!

Good to see Tesla roaring back.
Jury verdict on Musk was a superb result!
SP just need to hit $200 and once that is hit then no looking back, should comfortably hit $300 again!
Investor update on Mar 1st can provide a good uplift. Atleast price should move up as we get close to Mar 1st.
I will add today as there will be an opportunity for a drop considering US shooting down China's balloon.

Red, you made similar predictions in 2021 saying side ways and £1.20 max by summer 2021 but it hit £1.50 by summer and £1.20 much earlier and I expect the same to happen this year. £1.18 close to the results and after results should easily breach £1.20 and blue skies after that.

You are right Tomaa, media nowadays want eye catching headlines. They don't care how it impacts a company or an individual involved in that headline story. Telegraph published today another pointless article on RR. Nothing new in that same old.

Another thing to note is that Tufan's message to employees was on Wednesday and big funds have already seen it on Thursday and big investors must have heard it much before when Tufan gave presentation to analysts like from JPM and despite all that price kept going up on Thursday. It was only after FT article that retail investors like us came to know about Tufan's message and PIs panicked on Friday causing the little drop. If it was a crisis situation then it would have tanked much before and much heavier.

Like I said many times since Friday, the crux of the message from Tufan is that he wants RR to make money from every other division and not just civil aviation, which is a big positive step forward and big investors certainly will welcome his approach. Just with civil aviation business returning back to 2019 levels would value RR £3 as it was 336p pre-pandemic. Once RR improves margins and makes money from other businesses, RR valuation would be many multiples of current price.

https://twitter.com/jrendell/status/1618895811089154048?s=46&t=Bw5l5GCsmwTPxgs5sZlg9g

Courtesy Mark_rs

Mark_rs, just changed the subject so that everyone is aware how clueless is FT!

Good find Mark!
FT was totally clueless about RR! Calling RR a motor engineering giant shows that they are worse like daily mail. Totally lost their credibility.

Monday will be a big jump considering US ended well and Friday after US open RR gained the price!

https://seekingalpha.com/article/4562946-rolls-royce-returns-are-coming-finally

As per FT article, RR is on target to meet the positive cashflow for the last year and as per Seeking Alpha analyst, if RR hits £750M FCF this year then he thinks shares are worth £1.92 despite EFH at 62% of 2019. When EFH recovers 100% of 2019 levels, he rates £2.37. All this without much profits from other divisions which new CEO is now targeting and if you add that then RR shares are worth many multiples of current price.

when he did the investor presentation, probably he was told that RR cannot rely on the profits from civil aviation alone as rest of the businesses need to improve as well. They are investing heavily in other sectors but not much return on it despite multi billion dollar revenue. With Pandemic like events if occur in future due to which civil aviation is down again then RR will be in trouble although we can't see a pandemic like lockdown again in future. War is another risk and these are the risks that must have been highlighted by the investors in the presentation so RR should not just rely on engine flying hours and I guess that's what CEO implied in his message. He still could have used better words.

With engine flying hours recovering to 2019 levels, we know many analysts modelled it for a much higher share price than today. Pre-pandemic share price was £3.36! Now with all the other divisions also perform with improved margins, RR mcap should increase considerably. As CEO wants to improve the margins so am guessing that more funds will now start loading. I think price will start to increase again from next week once the news sinks in.

" If I was being overly critical the CEO just learnt how comments he makes can be used by a financial paper looking for a front page story using a well known company name to make headlines.
"

Really foolish to comment such a way even to the internal employees. He could have used some soft words.
If I was the chairman then I would have fired him today.
Warren East never in his tenure talked about RR this way.
I'm surprised how he changed his words as he was very optimistic about RR in his tweets when he joined in the beginning of Jan.

Seeking Alpha did a wonderful analysis with regards to the RR cash flow based on the recovery of flying hours. If flying hours recover to 2019 levels then they valued RR share price to be over £2!
I think CEO meant about to improve margins from other businesses and cannot run business just with the money from flying hours. Defense contracts, Power business, Electric aviation, SMRs all these divisions should bring in money too and I think that is what he is talking about. If these other divisions also bring in money for RR like the engine flying hours then definitely RR share price will go up by many multiples! May be £7?

just yesterday!
Come on guys, the news from CEO was on Wednesday. His comments were just a bit cautious and that's all it is.
flying hours from Civil aviation are improving and pre-pandemic share price was £3.36 (336p)!
The other businesses were not making money and CEO comments are to look at how to improve margins from other businesses.

The key is the civil aviation flying hours, which are flying with China opening big and so is the Deutsche Bank upgraded rating to 136p, which is just one-third of the pre-pandemic price? Lot of upside still and if margins improved then share price should be much higher than £3.36?

Recently travelled to Asia by Virgin which had A350-1000 powered by the world's most efficient large aero engine, the Rolls Royce Trent XEB-97 turbo fans as per the description from Airbus website!

The flight has 65 rows and it was totally full!