2024-05-25 10:00:00 ET
Summary
- RYCEY has successfully reversed its fortunes after facing extreme challenges during the COVID-19 pandemic, while guiding excellent growth through 2027.
- Given the "Power by the Hour" business model and recovering air travel trends, it is unsurprising that the new CEO has delivered robust FY2023 numbers while offering excellent FY2024 guidance.
- Combined with the improving balance sheet health and growing LTSAs, we believe that RYCEY remains well poised for robust growth as observed in the raised consensus forward estimates.
- Patient investors may also look forward to reinstated dividends and/ or share repurchase programs in the intermediate term, once it returned "to an investment grade credit rating."
- As a result of the attractive risk/ reward ratio, we are initiating a Buy rating for the RYCEY stock.
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For further details see:
Rolls-Royce: Set To Reach New Heights Ahead, Initiate Buy