Rolls-Royce Holdings PLC (LSE:RR.) shares are likely to be volatile when the engineer releases results later this month, that’s according to analysts at UBS.
“The direction of the move dependant on the nature of the commentary from the new chief executive,” UBS said in a note, albeit with little ‘conviction’.
“On balance we see upside risk given the apparent negative skew of positioning into the event from our conversations with investors. However, our conviction is low.”
Tufan Erginbilgic was in July named as the new boss at Rolls, with a 1 January start date
Erginbilgic’s background in engineering and international business included over 20 years at BP PLC (LSE:BP.), with five years as part of its executive team.
In his time with the company, Erginbilgic helped BP to achieve record profits and its best safety performance. He led BP's downstream business, which included refining, petrochemicals, service station network, lubricants, midstream operations and the air BP jet fuel operation.
As debuts go, Rolls-Royce’s new chief executive has got off to a pretty decent start.
Since Erginbilgic took up his seat on 1 January the shares have risen 12% to 111p and have now all but doubled since last year’s low point in October. Of course, Erginbilgic has yet really to do anything other than take occupation of his office.
Nevertheless, the firm’s backers are evidently feeling more positive after years of disappointment.
Anticipation is high ahead of the financial results, due tomorrow.