CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks involved.

Why did Rolls-royce shares jump up 11.5%?

Rolls-Royce shares shot up sharply at the start of the week after it secured a new 30-year contract with the US Air Force.

  • Rolls-Royce (LON: RR) share price rallied over 11% earlier this week
  • Its North America arm has been selected to power the US Air Force’s B-52 Stratofortress for the next 30 years
  • The aviation engineer’s stock is up 25% in the last one month alone
  • Keen to bet on Rolls-Royce’s rising share price? Open an account with us today to go long on the stock.

Rolls-Royce stock price: what’s the latest?

Rolls-Royce shares spiked up as much as 11.5% this week, after it announced that Rolls-Royce North America has inked up a new deal with the US Air Force.

The aircraft engineer said on Monday that its North American unit has been selected to provide the power plant for the B-52 Stratofortress under the Commercial Engine Replacement Program (CERP).

The tie-up means the American-made Rolls-Royce F-130 engine will power the B-52 for the next 30 years. The Air Force made the announcement after a vigorous multi-year competition.

The F130 and its commercial family of engines have accumulated more than 27 million engine flight hours. A variant of the Rolls-Royce engine selected to power the iconic B-52 is already currently in service with the USAF around the world, powering both the C-37 and E-11 BACN aircraft.

The B-52 CERP win creates demand for 650 engines to be produced at the site and will bring 150 new high-tech, high-skilled jobs for the state of Indiana.

Learn how to buy, sell and short Rolls-Royce shares with IG.

What are analysts’ latest ratings?

The stock is up 25% in the last 30 days, and up 38.6% year to date.

RR has a consensus rating of ‘hold’ and price target of 119p, based on the latest analyst data published by MarketBeat.

The latest price case came from JPMorgan analysts a month ago. They raised their price target on RR to 130p from 105p, on the back of higher earnings forecasts over the next three years.

The firm also predicted that a reported sale of the group’s Spanish unit ITP Aero to consortium-led investment house Bain Capital for a rumoured €1.6 billion (£1.5 billion) could boost free cash flow to around £750 million by 2023.

Finally, the analysts noted that Rolls-Royce’s first half underlying profits for 2021 beat consensus estimates by £536 million, which indicated that its cost-cutting programme is starting to pay off.

Elsewhere, Deutsche Bank analysts also boosted their price target to 116p from 113p, but kept a ‘hold’ rating, while Societe Generale raised its fair value estimate to 100p from 95p alongside a ‘sell’ call.

Take advantage of Rolls-Royce’s soaring share price today

Trade Rolls-Royce and over 16,000 international shares from zero commission with us, the UK’s No.1 trading provider.* Learn more about trading shares with us, or open an account to get started today.

*Based on revenue excluding FX (published financial statements, June 2020)


This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. All share prices are delayed by at least 20 minutes. Prices are indicative only.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.