Rolls Royce "sell"

01/02/07 - Panmure Gordon & Co

LONDON, January 2 (newratings.com) - Analyst Nick Cunningham of Panmure Gordon & Co maintains his "sell" rating on Rolls Royce Group PLC (RR-GBX). The target price is set to 370p.

In a research note published this morning, the analyst mentions that peaking of the aerospace cycle and the declining industry book to bill appear to be driving a de-rating of civil aerospace sector stocks, including Rolls Royce’s stock. Rolls Royce is witnessing market share compression on account of the company’s heavy reliance on engine sales through Airbus, which has been struggling as compared to Boeing, the analyst says.