Rolls-Royce Holdings PLC (LON:RR.) remains out of favour with analysts at Credit Suisse, who still see the engineer lagging its peers in terms of investment appeal.
Recent full-year results reflected the impact of the grounding of air travel during the Covid-19 lockdowns, but Credit Suisse said there also were a few unexpected caveats about 2022 when any travel recovery should be in full swing.
"Given the lack of upside, the level of risks on the forecasts and the strategic challenges faced by the group, we do not see Rolls- Royce as currently offering an attractive investment case when compared to other stocks in the sector (in particular other engine peers, which we believe are better able to invest in future opportunities without jeopardising shareholder payments).”
'Underperform' is the broker’s rating with a target price of 57p, though this is an upgrade of the previous target of 53p.
Bank of America has also raised its share price target but in its case to a more substantial 80p from 55p previously.
Both targets are still well below the current market price of 117p, up 1.87% today.