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Rolls-Royce speeds towards pre-Covid levels of flying hours

Published 22/09/2023, 11:44
© Reuters.  Rolls-Royce speeds towards pre-Covid levels of flying hours

Proactive Investors - In research published on Thursday, Bank of America (NYSE:BAC) analysts noted that Rolls-Royce Holdings PLC (LON:RR) has managed to recover 88% of its pre-Covid engine flying hours (EFH), with China’s reopening likely to support a move above 90% in the fourth quarter.

Analysts may even revise Rolls-Royce’s EFH projections higher in the run-up to the FTSE 100 constituent’s capital markets day on November 28.

BofA noted that Rolls’ EFH “significantly accelerated” through the third quarter following a weak second quarter and strong first quarter.

This has also supported higher free cash flow estimates from analysts.

In terms of run rate, BofA anticipates a 92% recovery to pre-covid levels for the full year.

BofA maintains a buy rating on Rolls-Royce shares with a price target of 254p against a publication price of 225p.

Read more on Proactive Investors UK

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