Europe’s Top Stock Rolls-Royce Gets Rare Sell Rating on Engine Worries

  • Berenberg downgrades amid concerns over XWB-97 engine
  • Says still early days in terms of executing new CEO’s plans

A Rolls-Royce Trent XWB-97 engine. 

Photographer: Paul R Boland/Rolls-Royce/Getty Images
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Rolls-Royce Holdings Plc got a rare sell rating on Tuesday as Berenberg downgraded last year’s biggest riser in Europe’s benchmark index, citing concerns around a key jet engine.

Analysts including Philip Buller cut the stock from hold, noting comments from Emirates President Tim Clark at November’s Dubai Air Show about the performance of Rolls-Royce’s XWB-97 engine in the hot and sandy environments of the Middle East.