Rolls-Royce share price: Group lands $1.7bn order from Singapore Airlines

on Feb 9, 2017
Updated: Oct 21, 2019
Listen

Rolls-Royce Holdings (LON:RR) has landed a $1.7-billion engine order from Singapore Airlines, the blue-chip group has said. The deal is a boost for the FTSE 100 company which is undergoing a restructuring as it looks to recover following a string of profit warnings.

Rolls-Royce’s share price has fallen into the red in today’s session, having lost 0.83 percent to 714.00p as of 13:16 GMT, underperforming the broader London market, with the benchmark FTSE 100 index having climbed into positive territory and currently standing 0.15 percent higher at 7,199.31 points. The group’s shares have gained just under 40 percent over the past year, and are up by some seven percent in the year-to-date.

Rolls-Royce announced in a statement today that it had won a $1.7-billion order from Singapore Airlines for Trent 1000 engines to power 19 Boeing 787 Dreamliner aircraft. The deal follows the carrier’s 2013 order for Trent 1000 engines to power 50 787s, with 12 of those aircraft now in service.
“The Trent 1000 has real momentum in the marketplace, winning more than 60 percent of engine competitions in the last six years,” Eric Schulz, president of Rolls-Royce’s Civil Aerospace unit, commented in the statement.

The order comes after Citigroup reaffirmed Rolls-Royce as a ‘buy’ earlier this week, with a price target of 935p on the shares. The Financial Times quoted the analysts as saying that the engine maker’s recent agreement with the Serious Fraud Office settling bribery allegations meant that the FTSE 100 group “can start moving the dialogue to the longer term with more credibility”.
The 20 analysts offering 12-month price targets for Rolls-Royce for the FT have a median target of 597.50p on the shares, with a high estimate of 935.00p and a low estimate of 475.00p. As of February 4, the consensus forecast amongst 23 polled investment analysts covering the blue-chip engine maker advises investors to hold their position in the company. Rolls-Royce is scheduled to update investors on its full-year performance next Tuesday.
As of 13:43 GMT, Thursday, 09 February, Rolls-Royce Holding PLC share price is 711.50p.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

0/10
Learn more
Manufacturing Stock Market Transport & tourism