Bank of America upgrades Royal Caribbean shares to Buy
The bank retained its US$330 price objective after a reported 26% decline in the cruise company’s shares.
Bank of America upgraded Royal Caribbean Cruises Ltd. from Neutral to Buy following a reported 26% share decline. The bank said the pullback had reduced the company’s estimated 2027 enterprise value-to-EBITDA valuation compared with its recent average.
The bank also reported that cruise spending returned to mid-teens growth in July and August. Based on that trend, its analysts said they expected Royal Caribbean’s net yield growth to reach at least 4% in the fourth quarter of 2026, a level they described as the strongest in the industry.
Analysts additionally pointed to Royal Caribbean’s announced US$3 billion investment for a 50% stake in Sandals Resorts. Bank of America estimated that the transaction would add 3% to 4% to EBITDA in the near term. The bank identified Caribbean pricing as a risk, alongside high-single-digit competitive capacity growth in 2027, while maintaining its US$330 price objective.
