Jefferies upgrades Royal Caribbean and lifts price target
Analyst David Katz cited the company’s strategic 50% acquisition of Sandals Resorts and increased the price target to $330 from $305.
On October 08, 2026, Jefferies analyst David Katz upgraded Royal Caribbean Group to Buy from Hold, citing the company’s strategic 50% acquisition of Sandals Resorts.
Jefferies described Royal Caribbean’s joint venture with Sandals as a $3.0 billion transaction. The firm expected it to contribute approximately $159 million in equity investment income in fiscal year 2027, equal to an incremental $0.59 in adjusted earnings per share.
The firm increased its forecast for 2027 net yield growth to 3.3% from its previous estimate of 2.9%. Jefferies attributed the stronger projection to improved occupancy levels, greater onboard spending and modest ticket-price increases.
Jefferies reduced its 2027 adjusted earnings-per-share forecast to $20.80 from $21.04, saying higher depreciation and interest expenses would offset part of the expected earnings benefit from the transaction.
Royal Caribbean Group operates brands including Royal Caribbean International, Celebrity Cruises and Silversea.
