After a rocky start to the year for Rolls-Royce (LSE: RR.) shares – the price saw a 19% fall from top to bottom – it seems that Britain’s largest manufacturer may have turned the corner. The recent days have seen several excellent pieces of news come out of the firm, three of which I think are worth highlighting:

• Early data suggests little-to-zero impact on flying hours from the Iran war.
• A significant contract signed on the introduction of SMRs (small modular reactors).
• A monster of a trading update, sending the share price up 8% on the day.

The upshot is that a number of analysts have been waxing lyrical about the stock. With many such analysts putting a £15 12-month price target on Rolls-Royce, it could mean it’s more likely the shares will surge by 20% or more in the next year.

Good cheer

Perhaps the most surprising titbit was the impact on flying hours for Rolls-Royce engines. The company announced that these had already recovered to pre-conflict levels. It turns out the vast majority of the issues were for the narrowbody sector, which the company has no dealings in.

There is a risk to be aware of here too. Rolls has plans to enter the narrowbody market in the near future. A prolonged Iran conflict may have some impact further down the line.

The second bit of good cheer came by way of progress on SMRs in Czechia. Terms have been agreed to build the first of six of these small nuclear power stations in the Central European country. The contracts have now entered the ‘execution phase‘ and the firm is expecting to generate revenues and profits this year. This is a giant leap for those of us who believe SMRs are one of the most realistic options for a future filled with green energy.

A possible buy?

The icing on the cake was the trading update to 31 March 2026. It’s been good news after good news from the company in recent years and this was no exception – the firm adding billions in market-cap in a single day.

The highlights? Outside of the two things mentioned above, reiterating guidance in the wake of a potentially impactful conflict in the Middle East was promising, and both operating profit and free cash flow are set to grow in the year ahead too.

It’s worth pointing out that Rolls-Royce now looks somewhat expensive compared to many other FTSE 100 stocks. The forward price-to-earnings ratio of 32 is not exactly cheap. We may need to see many more positive trading updates to justify the heady number.

On balance? It looks like the company is navigating what could have been a very difficult year. I believe a £15 share price doesn’t look too far away at all. The stock could be worth considering.