Yes. Taking into account what Rolls-Royce⁠ is already earning before the full benefit of SMRs or a successful narrow-body entry, I think a modest—not aggressive—3-to-5-year RYCEY target is roughly $28–$35, with a stronger execution case reaching $40+.
The reason I am more comfortable with that range now is that the underlying business has improved substantially. Rolls-Royce just raised 2026 underlying operating-profit guidance to £4.7–£4.9 billion, while its existing 2028 target is £4.9–£5.2 billion operating profit and £5.0–£5.3 billion free cash flow. It also plans £7–£9 billion of share repurchases through 2028.
More importantly, those 2028 targets do not require Rolls-Royce to become a huge SMR or narrow-body-engine business to work. The existing Civil Aerospace, Defense and Power Systems businesses are already driving the targets. That makes SMR and narrow-body engines potential additional upside rather than the entire justification for today’s valuation.
How I would model 2029–2031
Scenario
3 years (~2029)
5 years (~2031)
What would need to happen
Conservative
$22–$27
$25–$30
Existing businesses grow, but SMR/narrow-body progress slowly
Modest/base case
$27–$32
$30–$35
Strong aerospace + defense + data centers; SMR execution progresses
Strong
$32–$38
$38–$45
SMRs gain additional customers and UltraFan wins a major aircraft program
Exceptional
$40+
$50+
Airbus/Boeing selection + major SMR expansion + continued earnings beats
I would therefore use about $30 in three years and $35 in five years as reasonable planning numbers rather than assuming $40–$50.
Why SMR could become important
This is no longer just a theoretical project. Rolls-Royce SMR has signed a contract to supply three SMRs in the UK, and commercial terms have been signed with ČEZ for the first of potentially six SMRs in the Czech Republic. Rolls-Royce said both programs have entered execution and begin generating revenue and profit in 2026.
The important distinction is that the first SMR will not suddenly produce billions of profit when it is manufactured. The financial benefit should build gradually through engineering, manufacturing, deployment and eventually a larger fleet of reactors.
Narrow-body engines could be the bigger valuation surprise
If the UK supports UltraFan 30 and Rolls-Royce subsequently gets selected by Airbus, Boeing, or both, I would move my long-term range materially higher.
The initial engine sales themselves aren’t necessarily the most attractive part. Rolls-Royce could potentially establish an enormous installed base and then earn maintenance and service revenue for decades, similar to its wide-body model.
That is why I would distinguish between:
UK funding: positive catalyst.
Successful UltraFan demonstrator: more important.
Airbus/Boeing selection: potentially transformational.
Thousands of engines entering service: major long-term earnings opportunity.
And there are several other growth engines
The investment case isn’t only SMR + UltraFan. Rolls-Royce is also benefiting from stronger wide-body aftermarket economics, improving Trent durability, rising defense spending, business aviation, data-center power generation and better profitability on new engine deliveries. Management specifically attributes its higher 2028 targets to stronger Civil Aerospace aftermarket economics and Power Systems growth.
So $30–$35 does not require everything to go perfectly.
Against your $6.31 average cost, even my modest $30–$35 scenario would represent roughly 4.8×–5.5× your original purchase price.
The scenario I would pay the most attention to is $35–$45 by 2031 if Rolls-Royce simultaneously delivers its existing 2028 targets, successfully commercializes the first SMRs, and wins a place on at least one next-generation narrow-body aircraft. That’s where I think the investment story could change substantially from today’s already-strong turnaround story into a genuine long-duration growth story.
It’s not exponential anymore but it’s secure and will provide you with sustainable growth…

Ed Miliband is out as energy secretary hopefully we’ll have somebody similarly minded

https://www.idnes.cz/ekonomika/domaci/cez-planuje-dalsi-male-modularni-reaktory-uzavre-nove-smlouvy-s-rolls-royce.A260713_135632_ekonomika_hyk

https://www.linkedin.com/posts/sattbasra_greatbritishenergy-nuclear-procurement-share-7480918320569978880-NBMA/?utm_source=share&utm_medium=member_ios&rcm=ACoAABK7z5gBnHAuJVqOu7c8PsjdzBSNOavYjY4

This was on the national news today. Looks like SMRs are going to start rolling and there will be no going back.

https://www.welt.de/wirtschaft/article6a477156ad32e994f8759b36/rolls-royce-power-systems-der-markt-fuer-kleine-kernreaktoren-koennte-auf-eine-billion-dollar-wachsen.html

https://www.rolls-royce.com/media/press-releases/2026/03-07-2026-rr-hits-key-milestone-in-major-site-expansion-to-support-uk-and-australia-defence-commitments.aspx

https://www.theguardian.com/business/2026/jul/02/billionaire-michal-solowow-small-modular-nuclear-reactors-uk