Rolls-Royce: Credit Suisse cuts target price

(CercleFinance.com) - Credit Suisse maintains its "underperform" rating on Rolls-Royce shares, having reduced its target price to 53 pence (vs.
59 pence previously - current price: 98.5 pence, +2%).

The broker has based its decision on the group's trading update published yesterday, which says that Rolls-Royce expects to face a cash outflow of 2 billion pounds in 2021, well above the forecast of 1.14 billion, pounds, which is largely due to the reduction in flight hour targets for the year.

"Our 2022e-2023e forecasts are not materially changed and we expect a 2022e FCF of +£0.54bn," Credit Suisse says.



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