LONDON, May 15, 2013 /PRNewswire/ --
Edison Investment Research, a leading
international investment research firm, announces the initiation of
full coverage of Rolls-Royce (LSE: RR), a global power systems
business with activities across civil aerospace, defence, marine
and energy markets.
(Logo:
http://photos.prnewswire.com/prnh/20130417/608168 )
Edison has recently published a comprehensive report examining
the investment merits of Rolls-Royce, focusing on the group's
potential to benefit from delivery of its £60bn order book, more
than doubling revenues over the next decade. In his report, on the
shoulders of giants, Edison's head of Industrials, Roger Johnston, argues that the group is
building on its consistent strategy and benefiting from the
significant investment in R&D and manufacturing facilities over
the past decade to deliver increasing numbers of high-value Trent
engines. As a result, Rolls-Royce has the opportunity to deliver
significant operational gearing and bottom-line growth. In
addition, management focused on ensuring a culture of delivery and
on customers (delivering on promises), concentration (where to
invest) and cash/cost (improving financial performance) is designed
to drive operational margins and cash flow toward best in class
across the group over the next decade. Modelling several scenarios
by which this strategy could be achieved, Edison values Rolls-Royce
between 1,419p/share, a 17% premium to the current share price, and
1,714p/share, a 41% premium to the current share price.
For the full report see:
http://www.edisoninvestmentresearch.com/research/company/rolls-royce
The launch of coverage on Rolls-Royce is part of a programme of
research initiations on industrials companies exposed to global
market opportunities. Edison provides detailed research coverage on
more than 50 industrials and support service companies in
Europe, North America and Australia. Its industrials team has a range of
coverage across small-, mid- and large-cap companies active in
subsectors such as Aerospace & defence, Speciality materials,
Alternative energy, Building materials and Industrial support
services, allowing a complete understanding of industrial supply
chains. All reports published by Edison are available to download
free of charge from its website http://www.edisongroup.com.
About Edison Investment Research
Edison, the investment intelligence firm, is the future of
investor interaction with corporates. Our team of over 100 analysts
and investment professionals works with leading companies, fund
managers and investment banks worldwide to support its capital
markets activity. We provide services to more than 400 retained
corporate and investor clients from our offices in London, New
York, Berlin, Sydney and Wellington. Edison is authorised and regulated
by the Financial Services Authority
(http://www.fsa.gov.uk/register/firmBasicDetails.do?sid=181584).
Edison is not an adviser or broker-dealer and does not provide
investment advice. Edison's reports are not solicitations to buy or
sell any securities.
industrials@edisongroup.com
About Rolls-Royce
Rolls-Royce is a UK FYSE-100 listed, global power systems
company active in the civil aerospace, defence, marine and energy
markets. It provides power systems (engines, controls and complex
sub-systems) for both original equipment manufacturers (48% of 2012
sales) and aftermarket services (52%). The group employs more than
45,000 people across 50 countries worldwide in engineering and
service centres across all divisions. This reach is mirrored by the
balanced sales profile across North
America (36% of 2012 sales), Europe (31%), Middle
East and Asia (18%),
China (9%) and RoW (6%).
For more information please
contact:
Roger Johnston
Edison Investment Research
+44-(0)-20-3077-5722