Rolls Royce share price continued with its strong uptrend on Tuesday, gaining 0.85% at the time of writing after rising to 52-week highs of GBX 647. The stock has gained 10.5% in the last month and is up by 12.9% year-to-date. Rolls Royce has a strong order book that has built a strong sentiment around it, which will help keep it on the ascending trajectory.
Strong Order Book to Drive Growth in 2025
In late January, the company won a £9bn, eight-year contract from the UK Government for to build nuclear submarine reactors. In addition, Rolls Royce is eyeing another mega contract for the construction of Small Modular Reactors (SMR) in England and Wales. The SMR market is forecast to experience substantial growth in the next decade, reaching a value of $72.4 billion by 2033.
Besides government contracts, Rolls Royce (LSE: RR.) also has a strong demand from airlines. However, supply constraints in the engine manufacturing line could disrupt its ability to meet the growing demand. That could potentially disrupt revenue flow and increase downward pressure on Rolls Royce share price.
The stock rose by about 90% in 2024, and the company is likely to stay on the ascending trajectory as it reduces its debt and increases its revenues. A highlight of its strategy was the move to cut 2,500 jobs in October 2024. Also, as air travel numbers return to steady growth in 2025, the order book is likely to grow substantially in the coming month.
Rolls Royce Share Price Prediction
Rolls Royce share price pivots at GBX 640 and the upside will prevail if action stays above that level. The stock will likely encounter the first resistance at GBX 650.4. However, the upside could go higher and test the second resistance at GBX 660.
Alternatively, breaking below GBX 640 will shift the momentum to the downside, with the first support at GBX 628.2. Breaking below that level will invalidate the upside and potentially take the action lower toward the second support at GBX 613.
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