Goldman Sachs provided Rolls-Royce with a much-needed boost, setting out how free cashflow at the struggling British engineer could “substantially increase” to £1.5 billion by the end of the decade.
The investment bank upgraded the company’s shares from “neutral” to “buy”, added it to its conviction list of favoured stocks and raised its target price from 743p to £10.34.
“Rolls-Royce has the potential to substantially increase free cashflow between now and 2020,” the investment bank said. “We believe the building blocks of this performance can already be seen.”
Shares in Rolls-Royce dominated the FTSE 100, closing 42p up at 708p after a record £4.63 billion annual loss sent them tumbling from 740p to 666p last week.
It was beaten to the top of the blue