Rolls-Royce seen resilient to airline downturn but cash flow risk flagged by UBS

UBS said Rolls-Royce is relatively resilient if the jet fuel crisis tied to the war in the Middle East weakens the aviation cycle, but it cut the share price target to reflect slightly lower forecasts. The note is cautious rather than highly negative, implying modest downside to sentiment without a major fundamental shock.

Analysis

UBS said Rolls-Royce is relatively resilient if the jet fuel crisis tied to the war in the Middle East weakens the aviation cycle, but it cut the share price target to reflect slightly lower forecasts. The note is cautious rather than highly negative, implying modest downside to sentiment without a major fundamental shock.