Rolls-Royce downgraded to "neutral"

07/17/07 - Credit Suisse

LONDON, July 17 (newratings.com) - Analysts at Credit Suisse downgrade Rolls-Royce Group (RR-GBX) from "outperform" to "neutral." The target price is set to 570p.

In a research note published this morning, the analysts mention that the downgrade in rating is based on valuation and reflects concerns surrounding adverse currency effects. Rolls Royce is expected to be post robust 1H results, with 7.9% revenue growth and 9.8% EPS growth, the analysts say. The continued dollar weakness might negatively impact the company’s margins in 2007, Credit Suisse adds.