Years, is it time to sell Rolls-Royce shares?

With Rolls-Royce (LSE: RR.) shares among the strongest performers in the FTSE 100 over the past five years, the article asks whether it’s time for investors to sell after the rally. It highlights two concerns raised by cautious analysts. First is valuation: the company’s market cap has risen to £125bn, putting it in the Footsie’s top five, up from under £10bn in 2021. While earnings growth has improved and losses have turned into cash flow, analysts note that 2025 earnings per share (EPS) may include a one-off benefit, and forecasts don’t expect matching results at least through 2028. The article cites a forecast P/E of 35 versus a long-term FTSE 100 average near 15. Second, it points to exceptionally high expectations, citing how Rolls-Royce has repeatedly beaten broker targets, fueling the question of what happens if that pattern slows. Despite the doubts, the piece says 16 of 20 brokers rate the stock a Buy, with no Sell ratings, and the average price target of 1,718p implies roughly 15% upside.