Jefferies upgrades Royal Caribbean to Buy
The brokerage raised its price target and 2027 net-yield growth estimate following Royal Caribbean’s planned resort investment.
Jefferies upgraded Royal Caribbean Cruises Ltd. from Hold to Buy on October 8, 2026, and lifted its price target from USD 305.00 to USD 330.00. The brokerage also increased its estimate for Royal Caribbean’s 2027 net-yield growth from 2.90 percent to 3.30 percent.
Royal Caribbean agreed on September 23, 2026, to acquire a 50 percent equity interest in Sandals and Beaches Resorts for USD 3.00 billion. The transaction was expected to close in early 2027, with committed debt financing from Morgan Stanley.
Jefferies estimated that the joint venture would contribute USD 159.00 million in equity investment income during 2027, equivalent to USD 0.59 in adjusted earnings per share.
Royal Caribbean reported second-quarter 2026 revenue of USD 4.83 billion, representing year-over-year growth of 6.50 percent. Diluted earnings per share declined to USD 4.20 from USD 4.41, while adjusted earnings per share were USD 4.21.
Royal Caribbean shares traded at EUR 250.90 at Lang & Schwarz on October 8, 2026, down 0.75 percent from the previous close of EUR 252.80.
