Rolls-Royce: UBS upgrades stock, almost doubling TP
(CercleFinance.com) - UBS upgraded Rolls-Royce shares from "neutral" to "buy" on Wednesday, because of a valuation that is deemed "abnormally cheap", given the reopening of the Chinese economy.
The broker says that with 51% of world traffic, the market for large aircraft is essentially driven by Asia - and particularly China.
From this point of view, UBS says that the reopening of the Chinese economy constitutes a major and undervalued catalyst for an appreciation of the share, which is currently trading below its historical averages.
As a result, the broker says it has almost doubled its target price from 105p to 200p.
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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.
The broker says that with 51% of world traffic, the market for large aircraft is essentially driven by Asia - and particularly China.
From this point of view, UBS says that the reopening of the Chinese economy constitutes a major and undervalued catalyst for an appreciation of the share, which is currently trading below its historical averages.
As a result, the broker says it has almost doubled its target price from 105p to 200p.
Copyright (c) 2023 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.