Rolls-Royce’s outlook is still no clearer say analysts at Deutsche Bank, who have cut their price target for the aero-engine group to 110p from 130p.
Weak revenue growth this year will reflect the aftermarket, it said, with maintenance visits likely to lag the number of hours flown due to less utilisation and overhaul activity.
Margins, meanwhile, will be affected by fewer visits of profitable old generation T&M based engines (A330) and incrementally higher utilisation of low margin yielding engines (A350/787).
In short, "the outlook is still foggy", said the broker, which has a 'hold' rating.
Shares eased 2% to 96.7p.