Rolls-Royce Holdings is a global power systems business with activities in civil aerospace, defence, marine and energy. The group today announced that it has awarded $30 million contract by Shell in Philippines for gas turbines.

The fiscal year 2011 annual report showed total revenues of £11,277 million up 4% against one year previous, with earnings per share of 48.5p up 25%. Over the past decade the group has been able to double its turnover. Nearly 50% of its 2011’s revenues are constituted by civil aerospace industry. The geographic diversification is quite important, led by US market (32%), Europe (23%), and then Middle East and South East Asia (16%).
The share is currently trading 14 times the earnings per share forecast for full year 2012, in average with is sector, according to Thomson Reuters’ consensus.

In daily data the share is trading within a neutral range between 844 / 798 GBp (historical highs), since late February. This consolidation phase is characterized by reduced volatility, even if moving averages are still well-oriented both in daily and in weekly data. Only the breakout of 845 GBp resistance could lead the share to a new upward trend. In this case we suggest taking a long position on the security, with long horizon strategy, with a target price of 960 GBp in order to repeat the upward movement set up between January and February.