Report
Jeffrey Vonk

We Increase Rolls-Royce’s FVE Due to Labor Cost Reduction and More Profitable Power Systems Growth

After incorporating additional insights provided at the June 2018 Capital Day, we are increasing our fair value estimate for Rolls-Royce to GBX 1,140 per share (from GBX 1010) for the London-listed shares, and to $15 (from $14) for the ADRs. We maintain our narrow moat rating. Close to 60% of the fair value estimate increase is related to the benefits of the recently announced restructuring, while 50% of the increase results from a more positive stance on the power systems segment's margin enhan...
Underlying
Rolls Royce Holdings PLC ADS

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Jeffrey Vonk

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