Rolls-Royce: Oddo confirms rating and target price
(CercleFinance.com) - The broker Oddo has confirmed its buy rating on the Rolls Royce stock, maintaining its target price at 1120p, after the announcement of delays in the Trent 7000 engine.
Analysts estimate that delays in the production of the Trent 7000 do not call into question its quality.
Oddo says that Friday's release clarifies the Trent 7000 issue. Rolls-Royce is probably 15 engines behind this year for the A330neo (out of a commitment of 30).
Oddo thinks this is more of a problem of production constraints in the supply chain than a fault in the engine (problem different from the Trent 1000).
Analysts point out that the group is not changing its FCF guidance for 2018. These issues do not call into question the group's official guidance at the top of a range of 300m to 500m pounds for 2018.
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