(News Bulletin 247) – Oddo BHF maintains its neutral rating on the Rolls-Royce stock with a price target raised from 160 to 230 pence.
The analyst firm says the company maintains a high-power engine flight hours (EFH) range between 80% and 90% of 2019 levels in FY23, driven by the reopening of China which accelerated even faster than expected.
Consequently, Oddo BHF raises its EFH estimates to 92% from 2019 in 2023 (vs. 90% previously) to then reach around 103% in 2024, 110% in 2025 and 115% in 2026.
The analyst is also counting on a short-term upside of the Power System division, estimating that the segment should feel the double effect of better pricing and the intervention of new management on expenses and investments.
In this context, the broker increases its EPS by 53.1% / 26.7% / 17.2% respectively over the fiscal years 2023 / 2024 / 2025.
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