MARKET TALK: S&P Equity Research Cuts Rolls-Royce To Sell

27th Jul 2010 17:20

1620 GMT [Dow Jones] S&P Equity Research downgrades Rolls-Royce Group (RR.LN) to sell from hold and cuts the price target to 580p from 600p ahead of the 1H results. Says FY '10 "will not be plain sailing" and finds the shares already well supported. With the first outcomes of the UK Strategic Defence and Security review unlikely until at least Q4, the brokerage sees few positive short-term catalysts for the share price. Adds that airspace disruptions and the lower aircraft utilization rate in 1H will potentially weigh on service revenue streams, while it is also disappointed by the flow of orders from the Farnborough air show. Shares closed -1.6% at 593p, Tuesday. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires July 27, 2010 12:20 ET (16:20 GMT)