Forecast For Rolls Royce Stock

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Forecast For Rolls Royce Stock

12-Months Forecast For Rolls Royce Stock

One question which is on everyone's mind is when the Rolls-Royce stock will slow down or change direction. Also, is the Rolls-Royce stock still a buy at such high price levels? We will explore where the Rolls-Royce stock is headed during the next 12-months.

There's no doubt that Rolls-Royce is enjoying an amazing bull run. The stock value has almost doubled in the last year and gained an astonishing 475% during the 24-month period.

Rolls-Royce Stock Looks Expensive

So, those who bought the Rolls-Royce stock 2 years ago are now sitting at staggering returns. In fact, such returns were not even seen in many big name cryptocurrencies.

Right now, the P/E ratio of Rolls-Royce is 44 times, which is expensive. Also, it's way higher than the P/E ratio of 15x of the FTSE 100.

So, a key risk that the investors are facing right now is getting blinded from the past stellar performance. According to analysts, the P/E ratio of Rolls-Royce will drop to 28.6 in 2025 due to string earnings growth.

By the year 2027, the EPS of Rolls-Royce will drop down to 29.3p while the forward P/E will drop to 20x. This means the stock looks expensive right now but that could change in the coming years.

According to the CEO, the company has navigated the phase called burning platform. Now, it is essential for the company to keep growing at full speed.

group of 15 analysts have also shared their median price target for the Rolls-Royce. According to them, the stock can rise up to 640p, which means an upside of 9% from the current levels.

Also, the majority of the analysts still believe that Rolls-Royce is a strong Buy. Meanwhile, only a few have called for a hold or just a buy rating. Overall, Rolls-Royce is in a strong position and is highly likely to grow during the next 5 years.

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