Bank of America upgrades Royal Caribbean to Buy
The bank set a $330 price target after the cruise company’s shares retreated from their late-summer peak.
Bank of America upgraded Royal Caribbean Cruises from Neutral to Buy in late September 2026, according to the report. The change followed a roughly 26% decline in the company’s shares from their late-summer peak. The bank set a $330 price target and argued that the selloff had created a buying opportunity.
Bank of America data cited in the report indicated that cruise spending recorded mid-teens growth in July and August. The spending trend formed part of the bank’s positive assessment of the cruise sector.
Royal Caribbean also announced a $3 billion agreement to acquire a 50% interest in Sandals Resorts. Bank of America analysts estimated that the transaction would lift Royal Caribbean’s near-term EBITDA by 3% to 4%. They also said Sandals’ EBITDA could potentially rise from approximately $600 million to $900 million by 2030 if Royal Caribbean applies its supply-chain efficiencies, loyalty program and pricing discipline.
The report added that Bank of America also rated Carnival Corporation a Buy and assigned the company a $38 price target.
