Rolls-Royce: Berenberg cuts price target
(CercleFinance.com) - Berenberg said it cut its price target on Rolls-Royce from 270 pence to 250 pence after the British engine maker announced a funding package last week.
"While painful for shareholders, we believe the proposed 2-billion-pound rights issue, as part of a 5-billion-pound recapitalisation plan, sets up Rolls-Royce sufficiently to navigate an uncertain recovery and removes any lingering concerns about liquidity (and even solvency)", the broker said.
Berenberg also pointed out in a note that valuation metrics "still look attractive" and "screen well against aerospace peers."
The brokerage said it retained its "buy" rating on the shares.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
"While painful for shareholders, we believe the proposed 2-billion-pound rights issue, as part of a 5-billion-pound recapitalisation plan, sets up Rolls-Royce sufficiently to navigate an uncertain recovery and removes any lingering concerns about liquidity (and even solvency)", the broker said.
Berenberg also pointed out in a note that valuation metrics "still look attractive" and "screen well against aerospace peers."
The brokerage said it retained its "buy" rating on the shares.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.