JPMorgan raises Royal Caribbean price target following resort agreement
Royal Caribbean Group agreed to acquire a 50% equity interest in Sandals and Beaches Resorts for USD 3.0 billion.
JPMorgan raised its Royal Caribbean price target from USD 345.00 to USD 394.00 on September 24, 2026, while maintaining an Overweight rating, according to market-tracking information.
Royal Caribbean Group agreed on September 23, 2026, to purchase a 50% equity interest in Sandals and Beaches Resorts for USD 3.0 billion, forming a joint venture in the all-inclusive resort market. The transaction represents a forward earnings before interest, taxes, depreciation and amortization multiple of 10.00 times.
The deal is expected to close in early 2027, subject to customary approvals. Royal Caribbean has secured committed debt financing from Morgan Stanley.
For the second quarter of 2026, Royal Caribbean reported total revenue of USD 4.8 billion, an increase of 6 percent year over year. Net income reached USD 1.1 billion, while diluted earnings per share were USD 4.20 and adjusted earnings per share were USD 4.21.
The company carried 2.4 million guests during the quarter as capacity grew 5 percent. Its full-year 2026 guidance calls for adjusted earnings per share of USD 17.73 to USD 17.87.