The analyst indicates that Rolls-Royce still expects a decline in flight hours of its fleet of long-haul engines (EFHs) by 55% in 2020 followed by a rebound to reach 70% of the 2019 level in 2021 and 90 % in 2022.
'The company continues to count on an FCF that will return to positive in H2 2021 and an FCF of 750 M in 2022 against our estimate of 435 M' underlines Oddo.
'We expect a return to 2019 international traffic volume only in 2026'.
Oddo confirms his advice to reduce the value with a target of 200p. 'Give preference to Airbus, or even Safran and MTU among engine manufacturers'.
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