If we look at the performance of Rolls-Royce stock, it has gained almost 800% in the last few years. This massive surge in the stock price has also raised an important question: Can Rolls-Royce keep going higher from here?
According to 3rd party analysts, the Rolls-Royce stock is poised to rise by around 42% by the end of year 2025. A quick look at the last 1 year shows that Rolls-Royce stock has outperformed.
Since the March 2024, the Rolls-Royce stock is already up by 110%. And since the new CEO joined the office, the Rolls-Royce stock has gained a massive 800%.
As of now, the forward P/E ratio of Rolls-Royce is around 37, which is a little high. Now, here's the question: How much 5K will be worth if we invest it in the Rolls-Royce. One analyst believes that 5K invested in the Rolls-Royce can increase to 7,100.
By the year 2028, the Rolls-Royce will manage to achieve 4.5 billion in free cash flow. At the same time, the operating margins of the firm will be somewhere around 15 - 17%. With all of that, it becomes clear why investors are still buying Rolls-Royce at such high prices.
The overall sentiment for the Rolls-Royce is also bullish as around 12 out of 18 firms have issued outperform or buy ratings. However, the firms have different opinions when it comes to setting realistic share price targets.
One analyst has set a 240p price target for the Rolls-Royce, which highlights their bullish sentiment. Another analyst has set a more bullish target of 1150p for the Rolls-Royce stock.
The average forecast shows that the trading price of Rolls-Royce will be near 795p by the end of the year 2025.
Overall, everyone is bullish for the Rolls-Royce which is consistent with the firm's past performance. But even if the growth momentum starts to show signs of a slowdown, the firm is still setup to post strong growth in 2025.