BUZZ-Rolls-Royce: '£400 mln slimmer and simpler'

(Adds 'mln' in the headline)

** Britain's Rolls-Royce shares rise 3 pct after co announces 4,600 job cuts in an attempt to save £400 mln per yr by 2020

** "These changes will help us deliver over the mid and longer-term a level of free cash flow well beyond our near-term ambition of around £1bn by around 2020," co says

** The business overhaul will bear cost of £500 mln and will be spread across 2018-2020, it adds

** Morgan Stanley (Xetra: 885836 - news) says that longer-term prospects show clear improvement and that the restructuring should enable co to better manage investments and be more competitive around future market opportunities

** Jefferies sees RR "£400 mln slimmer and simpler"

** "If the FCF benefit of today's restructuring allows consideration to be given to more than whether FY20 FCF will or will not be £1bn, we believe the RR equity story will take a large step forward," its analysts add