Rolls-Royce Holdings (LON:RR) has launched a new family of engines aimed at business aviation, the blue-chip company has said. The move comes amid the group’s ongoing problems with its Trent 1000 engines.
Rolls-Royce’s share price fell on Friday, shedding 0.71 percent to close at 843.40p, underperforming the broader UK market, with the benchmark FTSE 100 index adding 0.18 percent to close at 7,730.28 points. The group’s shares have given up a little over two percent of their value over the past year, as compared with an over two-percent gain in the Footsie.
Group launches new engines
Rolls-Royce announced in a statement this morning that it was launching a new engine family for business aviation, with the introduction of the Pearl, a purpose-built engine which will be the sole engine for Bombardier’s latest business jets, the Global 5500 aircraft and the Global 6500 aircraft.
The Pearl 15 is the first of the planned Pearl engine family for business aviation and marks the sixth new civil aerospace engine introduced by the British group in the past decade.
“The Pearl engine is a pioneering product, bringing together the most eco-friendly and efficient technologies available today,” Chris Cholerton, President – Civil Aerospace, Rolls-Royce, commented in the statement.
Analysts on Rolls-Royce
The 17 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 900.00p, with a high estimate of 1,272.00p and a low estimate of 400.00p. As of May 25, the consensus forecast amongst 21 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company.
Rolls-Royce reiterated its profit and cash expectations for the current year earlier this month, further updating investors on its plan to repair some problematic Trent 1000 engines, saying that it was making ‘significant progress’.