Analyst Views: How did you take Rolls’ results and outlook for the year?
SASH TUSA | EDISON INVESTMENT RESEARCH
Rolls’ management is likely to focus on the operational challenges associated with the falling defence backlog and transition to a high level of Trent XWB deliveries. [T]he continued news-flow concerning the SFO investigations… [is] likely to be an unwelcome distraction, but not core to the investment case.
JONATHAN JACKSON | KILLIK & CO
We see this as a pause in an attractive great long-term growth story, and remain positive on the shares, which provide exposure to the theme of growing air travel. We would use the weakness in the stock as a buying opportunity.
SANDY MORRIS | JEFFERIES
Defence takes a sharp step back to where it was in 2010. Then, Rolls-Royce indicates growth will resume. We saw it coming to a degree, but were wrong-footed by defence doing better than we expected between 2011 and 2013.