Rolls-Royce share price outperforms as group secures Emirates order

Shares in Rolls-Royce Holdings (LON:RR) have climbed higher in London this morning, as the company said that it had secured an order for engines to power Airbus aircraft for Emirates. The news marks a boost for the blue-chip engine maker and comes after Credit Suisse lifted its rating on the company, arguing that the group’s issues with its Trent 1000 engines ‘appear to be on the mend’.

As of 09:51 GMT, Rolls-Royce’s share price had added 1.21 percent to 953.00p. The shares are outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.28 percent higher at 7,210.79 points.

RR secures Emirates order

Rolls-Royce announced in a statement this morning that it had secured an order for Trent 7000 engines to power 40 Airbus A330neo aircraft from Emirates, including the FTSE 100 group’s TotalCare service support. The carrier has also ordered 30 Airbus A350 aircraft, powered by the Trent XWB. Rolls-Royce will further provide Trent 900 engines for a further 14 Airbus A380s, taking the total Emirates A380 fleet powered by Trent 900 engines to 33 aircraft, noting that today’s deal supersedes previous deals with Emirates for a total of 52 A380 aircraft powered by the Trent 900.

“We welcome the news that Emirates is further extending its relationship with Airbus and Rolls-Royce,” Chris Cholerton, Rolls-Royce’s President for Civil Aerospace, commented in the statement.

Analyst ratings update

JPMorgan Chase & Co reiterated its ‘underweight’ rating on Rolls-Royce at the end of last month, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average price target of 976.42p.

Rolls-Royce is scheduled to update investors on its full-year performance on February 28.

As of 10:20 GMT, Thursday, 14 February, Rolls-Royce Holding PLC share price is 953.00p.