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If the forecasts of analysts prove to be correct, three of the shares in my Stocks and Shares ISA will increase in value by a combined 25% in 2026. This assumes an equal investment in each.
I would certainly be happy with that. But how likely is this? Letâs take a closer look.
RELX
Analysts have set a 12-month price target for RELX (LSE:REL) shares thatâs 43% higher than todayâs (12 December) value.
To try and achieve this, the provider of analytics and decision tools for professionals and businesses is investing heavily in artificial intelligence (AI) to help improve its customer offering. This should also lead to lower costs.
But the technology could be a double-edged sword. AI might enable cheaper competitors to more easily replicate the groupâs services. And weâve seen how devastating cyber security attacks can be.
However, for the time being at least, the group continues to earn a healthy margin and remains an international market leader in many of the segments in which it operates.
When publishing its results for the nine months ended 30 September, the group reported a 7% increase in underlying revenue compared to a year earlier, and an âimproving long-term growth trajectoryâ.
And although I think a 43% share price increase is probably a bit optimistic for such a mature company with a large market share, a look at its historic earnings multiple suggests that its shares are currently undervalued.
On this basis, I think itâs definitely one to consider.
Persimmon
Analysts are forecasting Persimmonâs (LSE:PSN) share price to rise 16% over the next 12 months. I reckon this assumes that the pace of recovery in the housing market, which is showing early signs of picking up, gathers momentum. And Iâm hopeful.
Mortgage rates are now at their lowest level since 2022 and most economists are expecting the Bank of England to cut the base rate further over the coming months. The cost of borrowing is a major factor in determining housing demand. Significantly, the group has a lower average selling price than its FTSE 100 peers and remains debt-free so it could grow faster than its rivals.
However, the UK economic outlook could stall progress and post-pandemic construction cost inflation has adversely impacted Persimmonâs margin.
But even if the housebuilderâs share price doesnât increase in line with the forecasts, thereâs always the generous dividend (no guarantees, of course) to offer some comfort. On balance, for both its growth and income prospects, I think Persimmonâs a stock worth considering.
Rolls-Royce
To be honest, Iâm less confident about my Rolls-Royce Holdings (LSE:RR.) shares achieving the analystsâ price target than I am about the other two. This is not because I have doubts about the groupâs prospects but, rather, its post-pandemic rally means the stockâs now pretty expensive. And with its miserly dividend, income investors will probably look elsewhere.
Although the groupâs share price could rise 13% in 2026, I think the biggest drivers of growth are several years away. These include the groupâs small modular reactor programme and its intention to return to the narrowbody aircraft engine market. But significant revenue is not anticipated until the 2030s.
However, Iâm prepared to wait. Thatâs why I plan to hold my shares and why others could consider adding them to their own portfolios.
The post Could these 3 holdings in my Stocks and Shares ISA really increase in value by 25% in 2026? appeared first on The Motley Fool UK.
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James Beard has positions in Persimmon Plc, RELX, and Rolls-Royce Plc. The Motley Fool UK has recommended RELX and Rolls-Royce Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
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