The Rolls-Royce (LSE:RR.) share price has climbed 41.4% over the past year, and I think the company’s recent half-year results make the stock one for investors to consider buying. <\/p>\n
Based on analyst consensus earnings forecasts and the current market multiple, my projection puts the shares at 1,788p by the end of 2027. <\/p>\n
That’s not guaranteed, of course, but here’s how I crunched the numbers to get to that potential target price. <\/p>\n
How the maths works <\/p>\n
I took today’s forward price-to-earnings (P\/E) ratio multiple of around 40 and applied it to the consensus earnings per share forecast for each year. Using the company-compiled consensus of 13 analyst ratings from July 2026, before the half-year results, the figures look like this: <\/p>\n
Year <\/p>\n
Consensus EPS <\/p>\n
Multiple applied <\/p>\n
Implied share price <\/p>\n
Implied return <\/p>\n
FY26 <\/p>\n
38.1p <\/p>\n
40x <\/p>\n
1,530p (10 August) <\/p>\n
\u2013 <\/p>\n
FY27 <\/p>\n
44.7p <\/p>\n
40x <\/p>\n
1,788p <\/p>\n
+16.9% <\/p>\n
FY28 <\/p>\n
52.3p <\/p>\n
40x <\/p>\n
2,092p <\/p>\n
+36.7% <\/p>\n
Those figures may hold up if the market continues to value the business at roughly 40 times forward earnings. <\/p>\n
That’s a big if, but there’s plenty to like including strong performance across all three divisions. So, what’s the story behind the company’s strong half-year results? <\/p>\n
How is it performing? <\/p>\n
The July 2026 consensus \u2014 released prior to the latest results on 30 July 2026 \u2014 assumed FY26 operating profit of \u00a34,198m. <\/p>\n
Management subsequently raised full-year operating profit guidance to \u00a34.7bn-\u00a34.9bn, materially above what analysts had been modelling. I wouldn’t be surprised to see consensus updates showing higher FY27 and FY28 forecasts as a result. <\/p>\n
The transformation since chief executive Tufan Erginbilgi\u00e7 took over in January 2023 has been well documented, but the half-year numbers looked strong. <\/p>\n
Operating profit of \u00a32.5bn in the first six months alone, margins improving across all three divisions, and free cash flow of \u00a32.0bn were just a few of the highlights. <\/p>\n
Our transformation continues to deliver, and we are demonstrating that Rolls-Royce is now a very different company to that of the past. A strong start to the year enables us to raise our guidance for 2026. <\/p>\n
CEO Tufan Erginbilgi\u00e7 <\/p>\n
What could derail the projection? <\/p>\n
Despite the strong recent update, there are plenty of risks to consider before investing. <\/p>\n
For one thing, the current lofty valuation means investors are banking on future earnings delivery. With only a modest 0.7% dividend yield, this is very much a growth play. <\/p>\n
Any disappointment in civil aerospace flying hours, defence order flow, or operating margins could see the stock come under pressure. <\/p>\n
The ongoing Middle East situation introduces uncertainty around international air travel demand, which directly affects the civil aerospace division’s engine flying hours and the associated long-term service agreement revenues. I’m still keen on the stock, but there’s plenty to think about. <\/p>\n
What’s my verdict? <\/p>\n
In my view, 1,788p by the end of 2027 is a reasonable project for the company’s stock. The multiple will need to hold, and execution will need to continue, but the track record under Erginbilgi\u00e7 earns some benefit of the doubt on both counts. <\/p>\n
I am actively considering adding a position at current levels. A pullback toward 1,400p would make the case more compelling, especially given there are other FTSE 100 opportunities that I’m also looking at right now. <\/p>\n
Should you invest \u00a35,000 in Rolls-Royce Plc right now? <\/p>\n
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. <\/p>\n
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Rolls-Royce Plc made the list? <\/p>\n
\u00a0See The Six Stocks <\/p>\n
Ken Hall does not hold any positions in the companies mentioned. <\/p>\n
The post Here’s my Rolls-Royce share price prediction for the end of 2027<\/a> appeared first on The Twelfth Magpie<\/a>. <\/p>\n More reading <\/p>\n The Twelfth Magpie 2026 <\/p>\n","protected":false},"excerpt":{"rendered":"The Rolls-Royce (LSE:RR.) share price has climbed 41.4% over the past year, and I think the company’s recent…\n","protected":false},"author":2,"featured_media":97840,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20731],"tags":[42415,7920,20768,1238,5692,21649],"class_list":["post-100582","post","type-post","status-publish","format-standard","has-post-thumbnail","category-rolls-royce","tag-consensus-earnings","tag-earnings-per-share","tag-operating-profit","tag-rolls-royce","tag-share-price","tag-target-price"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117070450012183975","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/100582","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/comments?post=100582"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/100582\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/97840"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=100582"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=100582"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=100582"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}