2024 was a spectacular year for Rolls-Royce (LSE: RR.) share price. The engineering giant has seen its market capitalization explode as a new management team rights the ship and returns the company to profitability. And so far, the stock has surged more than 80% year to date.

But with so much growth already under its belt, investors are starting to wonder if there is still room for further upside. So let’s see what expert analysts have to say on the subject and whether I should consider this business for my portfolio.

Will Rolls-Royce share price hit 675p?

In October, 18 institutional analysts followed Rolls-Royce. For the most part, it appears that the overall sentiment is quite positive, with 13 reviews split into the Outperform or Buy categories.

Yet despite the largely positive sentiment from financial institutions, the Rolls-Royce share price forecast is the point where things start to look less promising.

It’s true that one analyst predicted the stock could hit 675p by this time next year. Relative to the current share price, this suggests over 20% upside potential. This is, however, the most optimistic outlook for the company, with the most negative projection suggesting its stock price could collapse by as much as 56%!

On average, it seems that most analysts believe the stock is valued at 552.50p, which is very close to its current trading level. In other words, Rolls-Royce appears to have already priced its expected growth potential into its valuation.

But what could happen next to change that, for better or worse?

What could go wrong…or right?

Let’s start with the negatives. One of the main catalysts for Rolls-Royce’s comeback is the rebound in the travel market. However, if we look at the latest airline results, it seems that plane ticket prices are decreasing.

A possible explanation for this phenomenon is the slowdown in travel demand, as vacations began to be delayed. And as many of the group’s engine maintenance contracts are based on the number of flight hours, this slowdown in the trend could have repercussions on Rolls-Royce’s business. revenue growth.

On a more positive note, the group’s mini-modular nuclear reactors remain on track to be launched before the end of the decade. Given that the UK government has begun to express interest in cost-effective nuclear energy options, the company appears poised to receive many new orders, provided it can meet expectations. And with the UK not being the only country exploring nuclear power, Rolls-Royce could reap huge long-term profits from the project.

Is it time to buy?

As promising as Rolls-Royce’s long-term potential may seem, the business is still dominated by its Civil Aerospace division. And right now, this is the segment that is facing an increasing amount of uncertainty. Having already experienced a big rise in valuation, I wouldn’t be surprised to see the Rolls-Royce share price take a hit if growth begins to slow down. I therefore stay away for the moment despite the optimistic outlook in analyst opinions.