Rolls-Royce target hiked on dividend resumption expectations

Barclays has become the latest broker to set a price target for Rolls-Royce Holdings PLC north of 400p. It thinks the potential reinstatement of an investment grade rating, and subsequent resumption of the dividend will be a key catalyst. Barclays said despite an expected £300 million of one-off outflows (over-hedging costs/OE concessions), it forecasts Rolls reaching a net cash position of around £750 million in 2024, “a key metric for potential reinstatement of an investment grade rating.” It forecasts an ...