Morgan Stanley analyst Ross Law initiated coverage of Rolls-Royce with an Equal Weight rating and 166 GBp price target. Amid continued supply chain constraints, the analyst started coverage of the European Aerospace with a preference for aftermarket suppliers. Older aircraft will likely remain in service for longer, generating profitable aftermarket sales not reflected in current through-cycle average valuation multiples, the analyst tells investors in a research note. Safran is the firm’s top pick.
Published first on TheFly