Rolls-Royce Holdings PLC (LSE:RR.)’s engine flying hours could outdo expectations this year as global aviation hones in on pre-pandemic levels, according to UBS analysts.
First quarter flight times of Rolls-Royce powered planes, which determine how much the FTSE 100-listed aerospace firm is paid by airlines, could top 2.8mln hours, UBS said in a note.
This could plot Rolls-Royce on course to outdo UBS’ initially anticipated 13mln hours of flying in 2023, the bank forecast, though the figure would still sit at just 85% of 2019 times.
Looking ahead to Rolls-Royce’s next trading update on Thursday, 11 May, UBS anticipated no major announcements would be made.
“We expect guidance to be reiterated and no meaningful updates on the strategic review,” UBS noted, repeating a ‘buy’ rating and share price target of 200p for Rolls-Royce, up 29% on Friday’s opening price.
Rolls-Royce forecast operating profit to sit between £0.8bn and £1bn come the end of 2023, up from £0.7 last year, alongside free cash flow in the region of £0.6bn to £0.8bn, compared to 2022’s £0.5bn.