Rolls-Royce holdings (LSE: RR.) The shares have made several British investors prosperous. The share price acceleration since the company pulled itself out of the depths of the 2020 stock market crash has been nothing brief of stunning. And it has given many investors incredible multitasking.

But why am I looking at the specific £8,580 invested in the company in May 2025? That’s because it would now be worth a staggering £100,000. And just £858 would turn into a chilly 10 grand. At least that’s according to the share price of 1,186p at the time of writing. When you read this, the situation may be slightly different.

Here’s an intriguing part. Rolls-Royce is forecast to pay a dividend of 10p per share this year. This would represent a yield of just 0.84% ​​on the current share price. But an investor who bought five years ago would have seen a return of 9.8% on the price they paid then!

Are you holding your breath?

Expecting the same returns over the next five years could be bordering on madness. That is, it would need another 1046%. And things like this don’t usually happen too many times in a row.

Rolls-Royce shares are also down slightly from their 2026 high. Since February 26, we have seen a decline of 19.8%. Just think, if the price hadn’t dropped, the initial £8,580 could now be worth £119,750!

Does this mean that the rapid economic growth seen over the last few years has reached its climax and from now on everything will be lifeless? Several things suggest that Rolls-Royce shares may just need to rest for a while.

The decline coincides with turmoil in the Middle East. Canceled flights, high fuel prices… this is not a good combination. However, I would say that the fall was quite modest. And there will certainly be hopes for the revival of the defense sector.

Stunning predictions

Then we come to analyst forecasts. They forecast that in 2026–2028:

• Earnings per share increased by 36%
• Price to earnings (P/E) drops from 32 to 23
• Net cash increased by 83% to £5.4 billion

It doesn’t sound like the company has run out of steam, does it?

Oh, and the most confident of them sees Rolls-Royce shares rising a further 47%, and brokers’ targets tend to be short-term too. Admittedly, not everyone is so confident – there is one grumpy one who sees shares down 7%. However, even an average target would mean a 19% augment in the share price from today.

Done and dusted?

Despite analyst enthusiasm, I included Rolls-Royce shares among them FTSE100is the riskiest at the moment. The main uncertainty I see is how long it might take to see profits from diminutive modular reactors (SMRs) – Rolls estimates no earlier than 2030. And what will happen to profits a few years before that?

Rolls-Royce stock is not for me as I prefer low risk. However, long-term growth investors should consider Rolls if we see further declines in 2026.