Rolls-Royce (LON: RR.) shares are up over 7% Monday morning on news that it has been selected to provide the powerplant for the B-52 Stratofortress under the Commercial Engine Replacement Program (CERP) for the United States Air Force.
The B-52 Stratofortress is aircraft described as an American long-range jet-powered strategic bomber.
The news means the American-made Rolls-Royce F-130 engine will power the B-52 for the next 30 years after the Air Force conducted a multi-year competition.
Tom Bell, Chairman & CEO of Rolls-Royce North America, and President of Defence said: “We are proud to join a truly iconic U.S. Air Force program and provide world-class, American-made engines that will power its missions for the next 30 years. The F130 is a proven, efficient, modern engine that is the perfect fit for the B-52.”
A variant of the Rolls-Royce engine selected to power the iconic B-52 is already in service with the United States Air Force globally, powering the C-37 and E-11 BACN aircraft.
Rolls-Royce will build and test the F130 engines at its Indianapolis, Indiana, facility after recently completing a $600 million investment to upgrade the advanced manufacturing campus.
Rolls-Royce said 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.
Rolls-Royce shares are currently trading at 142.22p, up 7.3% from Friday's close and 43% in the last three months. On Monday morning, Morgan Stanley raised Rolls-Royce's price target to 134p from 106p with an Equal-Weight rating.
In August, Rolls-Royce's announced an agreement to sell its Bergen Engines liquid fuel and gas engines business to Langley Holdings. In addition, the company also received a boost over the weekend after news emerged that it could gain extra support for its mini nuclear reactors from the UK Government.
One of the most frequently asked questions we receive is, “what stocks are best to buy right now?” It's a wide-ranging question, but one that we have answered… Our AskTraders stock analysts regularly review the market and compile a list of which companies you should be adding to your portfolio, including short and longer-term positions. Here are the best stocks to buy right now
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage . 68 % of retail investor accounts lose money when trading CFDs with this provider . You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money .