Dow Jones Newswire27 Nov 2023 17:43
Rolls-Royce CMD Targets Seen Boosting Estimates — Market Talk
Rolls-Royce's financial target updates at its capital markets day are expected to lift analyst forecasts, Deutsche Bank analysts write ahead of the U.K.-based aircraft engine manufacturer's event on Tuesday. "We believe that a >GBP1.6bn EBIT improvement is likely by 2028, driven by a host of factors, from cost reductions and efficiency gains to price revisions and some FX tailwinds," analyst Christophe Menard and associate Sriram Krishnan write. A return to declaring dividends from 2024 is also expected, they say. The targets would be bold enough to make the event a welcome revolution for the company, DB analysts had said in another note earlier this month. Shares trade flat at 241 pence and are up 159% year to date. (elena.vardon@wsj.com)