(News Bulletin 247) – The title Rolls-Royce signs Wednesday one of the strongest rises of the FTSE 100 thanks to an increase in recommendation of AlphaValue, which says it is more optimistic on the group after the arrival of a new general manager.
At 12:45 p.m. (London time), the title of the engine manufacturer gained 1.5% while the FTSE index advanced at the same time by 0.4%, which brings its gains since January 1 to almost 135%.
In a note released in the morning, AlphaValue analysts say they are reassured by the assumption of office, at the beginning of the year, of Tufan Erginbilgic, which, according to them, gives hope for the prospect of an upcoming reorganization of activities.
They also welcome the solid half-year results recently unveiled by the aeronautical equipment manufacturer, which emerged above both its estimates and market forecasts.
‘We believe this performance is sustainable due to the recovery of the large engine market (back to around 90% of its 2019 levels), improving contract terms (due to inflation and the indexing) and better cost control in all business lines,” they add.
The intermediary is now showing a ‘build up’ recommendation on the stock, versus ‘lighten up’ so far, with a price target left unchanged at 244 pence.
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