Rolls-Royce upside in longer-term cash flow, says Oddo
Rolls-Royce is on the verge of a "significant" upturn in cash flow, which analysts at Oddo BHF said should be the sole decisive metric to which investors pay attention.
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Rolls-Royce Holdings
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As the engine maker has "identified and contained" the problems with its misfiring Trent engines, Oddo said the targets to generate £1bn of free cash flow in 2020 and £1.8bn in 2024 were "plausible".
On that basis, Oddo analyst Antoine Boivin Champeux said that would give a value of 1,120p to the shares and so upgraded themto 'buy' from 'neutral'.