Rolls-Royce Holdings PLC (LSE:RR.) is being tipped for an upbeat third-quarter trading update on 7 November by UBS but with an emphasis on the long-term potential.
Engine flying hours, a key metric for the FTSE 100 group, continue to track at the low end of the guidance range with 100-101% of 2019 levels in July-August and around 102% likely in September, said the Swiss bank.
“We expect commentary suggesting the low end of the range more likely.
“In the past 12 months, investors have decreased focus on near-term flying hours given the transformation underway”.
Underlining that increased confidence, UBS expects a bullish view on long-term targets to be the tone of the update but with no new targets to be given.
On mini-nukes (SMRs), UBS is expecting some qualitative commentary given the recent sector newsflow.
'Buy' remains UBS’s investment rating with a 640p price target.