Can the Rolls-Royce share price really hit 2,000p by October 2027?

The stunning Rolls-Royce (LSE: RR) share price leaves much-hyped US tech stocks like Nvidia in the shade.

The shares are up a mighty 1,035% over five years, while ‘slowcoach’ Nvidia barely managed 919%. I’m kidding, of course. Both have blown the lights out. It’s just nice to see Rolls blowing the lights out that little bit more. One in the eye for those who thought the FTSE 100 didn’t do growth stocks these days.

Enough gloating. As ever with investing, all that matters is what happens next. And surely, Rolls-Royce can’t keep doing this? Its market cap is now £124bn. Another 1,035% increase would lift that to £1.4trn. The FTSE 100 and FTSE 250 combined are ‘only’ worth £2.88trn. But it can still be a terrific investment.

Flying on three engines

All three divisions are humming along nicely. Civil Aerospace is benefiting as global flying recovers, with large-engine flying hours expected to hit up to 120% of 2019 levels this year. Defence is benefiting from rising military spending, while Power Systems is riding soaring demand for electricity from data centres.

Rolls-Royce also has a massive potential opportunity in small modular reactors, or mini-nukes, as countries seek reliable low-carbon power for industry and data centres.

Underlying operating profit climbed 41% to £3.5bn in 2025, while free cash flow jumped 35% to £3.3bn. This was followed by a monster first half of 2026, with operating profit up 46% to £2.5bn and free cash flow up 24% to £2bn. Full-year forecasts look bold too.

This FTSE 100 stock is expensive

There’s an obvious stumbling block. The price-to-earnings ratio is now around 50. It falls to 35x on a forward basis for 2026, and 30x for 2027, but it’s still a hefty valuation. No wonder the shares are up a modest 27% in the last year.

There are risks too. A bursting AI bubble could hit data-centre spending, governments could struggle to deliver planned defence increases, and an economic slowdown could hit flying hours.

Jet fuel is another worry as the Iran war pushes up prices and threatens shortages. That could feed through to flight ticket prices and demand.

Checking out the stock forecasts

So what do the experts say? The 19 analysts offering one-year share price forecasts produce a consensus target of 1,765p. If correct, that would see Rolls-Royce shares climb 19.2% from today’s 1,481p. Jefferies and Morgan Stanley have both set a target price of 2,000p. That would mark a 36% increase from today. Give that many investors now have a large stake in Rolls-Royce, that would be a real boost.

For 2,000p to happen, a lot would have to go right. With Tufan Erginbilgic at the wheel, anything is possible. But when I look at a P/E of 50, I won’t consider buying Rolls-Royce shares today. I’d rather wait for a market dip, and hope to get in at a lower valuation. I’d target other UK growth stocks first, like this one…

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Harvey Jones owns shares in Nvidia and Rolls-Royce.