Another 35% in 2025-Can the price of Rolls-Royce shares continue to rise forever?

He Rolls-Royce (LSE: RR) The price of shares will simply not stop. He Ftse 100 The aerospace stock has fired 772% in just three years. During the past year, 102%shot.

Many investors assumed that he would run out of Puff. Some stopped buying. Others took profits too soon. Anyway, they will kick themselves, since Rolls-Royce has increased another 35% so far in 2025.

Of course, my holder is rhetorical: there is no price of actions forever. But once the impulse is established, an action can be raised for much longer than it seems feasible. The big question is: Rolls-Royce still has fuel in the tank or is it a correction on the way?

Number one ftse 100 flyer

2025 has brought many good news. In January, Rolls-Royce obtained the largest contract of the Ministry of Defense in its history, an agreement of £ 9 billion for nuclear submarine engines.

The February results showed that 2024 operational profits increased 49% to £ 2.9 billion, while the group rose objectives in the middle of the period, restored its dividend and announced a repurchase of shares of £ 1 billion for good measure.

Civil aviation remains a great gain driver, with Rolls-Royce engines in high demand as long-distance air trips continue to recover after the pandemic. Now the defense is entering the act. The actions shot again earlier this month, as European nations increase military spending to deter Vladimir Putin.

The Rolls-Royce movement to small modular nuclear reactors (SMR) could further boost growth. These 'mini nuco' are still under development, but if they take off, Rolls-Royce has a great opportunity.

Despite all that optimism, there are many risks. With a price / profit ratio of 40, it is quoted with a mass premium compared to the average of 15 FTSE 100. That is justified if the profits continue to rise, but if the growth encounters at any time, the price of the shares could receive great success.

There is also a risk that European nations can be cooled when buying US defense teams due to Trump's lack of perceived reliability as an ally. While that could benefit Rolls-Royce in Europe, it could also damage its US defense trade if the United States represents reprisals.

Growth, dividends and a repurchase

And what about Trump's commercial war? If tariffs, Rolls-Royce engines and energy systems increase more expensive for US buyers, deboling sales.

If the United States falls into the recession, long -distance air trips can slow down. It is a concern because Rolls-Royce engine maintenance contracts are based on flown miles.

If those mini neck do not meet expectations or get a thumb from governments, disappointed investors could begin to rescue.

The 16 analysts covering Rolls-Royce have produced an average objective of 780p. If it is correct, that suggests a small fall of around 2% as of today.

The forecasts are slippery things, but it is easy to see that the stock slows down here. On the other hand, I have been saying that during the last 18 months.

I finally stopped worrying and joined the fun, buying Rolls-Royce actions on August 6 by 455p during a brief summer fall. At today's price of 795p, I have about 75%. But at some point, someone will burn. Now I have a good security network. The new buyers will not have that.

Rolls-Royce is now a company of £ 66 billion. It is much bigger than it was, but it could still be bigger. I think it still has potential bags and myopic investors should consider buying it, especially on a dip.