The Rolls-Royce Holdings (LSE:RR.) share price appears unstoppable. On 30 September 2020, the group’s shares were changing hands for 44.61p. Now (8 September), I could buy one for \u00a314.86. That’s a massive increase of 3,231%. What’s more, the group’s dividend has been reinstated. But what are analysts expecting over the next 12 months? <\/p>\n
Let’s take a closer look. <\/p>\n
What’s the City predicting? <\/p>\n
Those who are paid to crunch the numbers have an average 12-month share price target of \u00a317.30. That’s a 16.4% premium to today’s value. They’re also expecting a dividend of 12p a share to be paid over the next year. <\/p>\n
What does this mean? Well, if someone were to buy 168 shares at a cost of \u00a32,496.48, they’d be worth \u00a32,906.40 by September 2027. In addition, dividends of \u00a320.16 would be received. Overall, that’s a return of 17.2%. Of course, there are no guarantees that these forecasts will prove to be accurate. <\/p>\n
Going places <\/p>\n
But Rolls-Royce feels to me like a business with plenty of momentum behind it at the moment. Its half-year results were so good that it upgraded its full-year outlook. It now expects an underlying operating profit for 2026 of \u00a34.7bn\u2013\u00a34.9bn. Previously, it was predicting \u00a34bn\u2013\u00a34.2bn. <\/p>\n
This is a huge upgrade and reflects the fact that all three of its divisions \u2013 civil aerospace, defence, and power systems \u2013 continue to perform strongly. <\/p>\n
At this point, I think it’s worth reminding ourselves how the group’s share price has bounced back since the pandemic: <\/p>\n
30.9.20: \u00a30.45 <\/p>\n
30.9.21: \u00a31.40 <\/p>\n
30.9.22: \u00a30.70 <\/p>\n
30.9.23: \u00a32.21 <\/p>\n
30.9.24: \u00a35.27 <\/p>\n
30.9.25: \u00a311.90 <\/p>\n
8.9.26: \u00a314.86 <\/p>\n
Given Rolls-Royce’s impressive results and optimistic outlook, a share price of \u00a317.30 by September 2027, could be on the cards. Indeed, one analyst reckons \u00a320 is a realistic target. <\/p>\n
Possible challenges <\/p>\n
However, there are risks. For example, the group’s on-site power solutions are proving increasingly attractive to owners of data centres. But if the AI boom were to slow (or worse) it could spell trouble for Rolls-Royce. <\/p>\n
Similarly, the pandemic reminded us how vulnerable the group is to disruption in the aviation industry. <\/p>\n
And with its shares already attracting a generous multiple \u2013 28 times forecast earnings per share for 2028 \u2014 a slowdown in earnings could have a significant impact on its share price. <\/p>\n
My view <\/p>\n
However, I remain optimistic. The stock’s the best performer in my ISA even though I didn’t take a position until 2025. And I plan to keep hold of my shares. Indeed, for who that don’t have any in their own portfolios, I still believe it’s worth considering. Why? <\/p>\n
Long-term, Rolls-Royce wants to re-enter the narrowbody aircraft engine market. And its small modular reactor programme is progressing as expected. Its ongoing development of factory-built mini nuclear power stations is attracting plenty of interest. <\/p>\n
More immediately, increased geopolitical uncertainty is likely to help the group’s defence business. And rising air passenger numbers and bigger cargo traffic volumes are boosting the group’s large engine flying hours, the bread-and-butter of its business. <\/p>\n
Overall, I think Rolls-Royce is a high-quality British business that continues to beat expectations. But it isn’t the only growth opportunity that’s caught my attention recently\u2026 <\/p>\n
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James Beard owns shares in Rolls-Royce Holdings plc. <\/p>\n
The post By September 2027, the Rolls-Royce share price and dividend could turn \u00a32,496.48 into\u2026<\/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 Holdings (LSE:RR.) share price appears unstoppable. On 30 September 2020, the group’s shares were changing hands…\n","protected":false},"author":2,"featured_media":118107,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[20731],"tags":[1238,20767,23779,5692],"class_list":["post-119137","post","type-post","status-publish","format-standard","has-post-thumbnail","category-rolls-royce","tag-rolls-royce","tag-rolls-royce-plc","tag-share","tag-share-price"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@UnitedKingdom\/117228872905862757","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/119137","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=119137"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/posts\/119137\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media\/118107"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/media?parent=119137"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/categories?post=119137"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/britain\/wp-json\/wp\/v2\/tags?post=119137"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}