Oddo BHF has reiterated its 'outperform' rating on Rolls-Royce, with its target price raised from 350 to 465 pence, in the wake of an EPS revision of around 18% on average over the next four years for the British engine maker.

"The milestone reached in 2023 and the favorable momentum of EFH largely lend credibility to the high range of medium-term targets and a rapid return to investment grade. Despite the price appreciation, the valuation is still largely attractive", it judges.

The research firm notes that the share is trading on an adjusted FCF yield 2025 of 8.7%, almost twice that of Safran, and a PE 2025 of 17.1 times, reflecting a discount of around 26% to Safran and broadly in line with MTU.

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