Rolls-Royce share price: Group looking toward electric future

on Jan 3, 2017
Updated: Oct 21, 2019
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Rolls-Royce Holdings (LON:RR) is looking to an electric future, The Telegraph has reported, quoting the company’s chief executive Warren East. The comments come as East looks to revive the British engine maker following a turbulent period marked by a series of profit warnings.

Rolls-Royce’s share price has surged in London this morning, having added 0.99 percent to 674.62p as of 09:31 GMT. The stock is outperforming the broader market, with the benchmark FTSE 100 index currently standing 0.54 percent higher at 7,181.59 points. The group’s shares added nearly 17.5 percent last year, as compared with an over 15-percent rise in the Footsie.
Rolls-Royce’s boss Warren East told The Telegraph over the weekend that the company needed to be reshaped so that it could help to lead a number of big technological changes, including electrically powered aircraft. While the idea of jet engines being replaced by electric propulsion has long been dismissed because of the limited distance which existing designs are able to travel, East signalled that the British engine maker was now taking the concept seriously.

“There’s a lot of chatter about hybrid electric flight, not just little aeroplanes but regional aeroplanes. I’m convinced we will see these things happen sooner rather than later,” he told the Telegraph. “There is a race on. We need to be ready by 2020 because people are talking about entry into service by 2030.”
The comments come with Rolls-Royce undergoing a shake-up under East, who took the top job at the company in 2015 following a string of profit warnings.
The 19 analysts offering 12-month price targets for Rolls-Royce for the Financial Times have a median target of 615.00p on the shares, with a high estimate of 935.00p and a low estimate of 475.00p. As of December 24, 2016, the consensus forecast amongst 25 polled investment analysts covering the stock advises investors to hold their position in the company.
As of 09:41 GMT, Tuesday, 03 January, Rolls-Royce Holding PLC share price is 675.57 p.

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