Rolls Royce: Credit Suisse still a seller

(CercleFinance.com) - Credit Suisse confirms its underperform rating on the Rolls Royce stock with an adjusted price target of 200p (vs.
210p).
The analyst believes that the lack of visibility on the reconstruction of the group's balance sheet and the persistent volatility of forecasts make the stock unattractive to investors.

Credit Suisse has revised its free cash flow forecasts for 2020 (-£4.1bn) and 2021 (-£1.1bn) and points out that cash outflows in the first half of 2020 (-£2.8bn) are in line with market expectations (-£3.05bn).

Analysts have doubts about Rolls-Royce's strategy and fears a “severe but plausible” downside scenario, which would "require the group to draw down its GBP1.9bn RCF," the broker says.


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