MARKET TALK: UBS Raises Rolls-Royce Price Target

2nd Aug 2010 10:52

0952 GMT [Dow Jones] UBS raises Rolls-Royce Group (RR.LN) price target to 500p from 400p after a good set of 1H results, coming in at the upper end of consensus expectations. Says a very strong performance at marine in both sales growth and margins offset a weak margin performance in civil aerospace, its core earnings driver. Maintains sell recommendation given its weak cash flow profile, added accounting issues and its premium valuation. Says Rolls trades at a significant 30% premium to its close sector peers. Shares +1.1% at 586.5p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires August 02, 2010 05:52 ET (09:52 GMT)