Royal Caribbean shares rise after two analyst upgrades
Bank of America and Deutsche Bank upgraded the cruise operator to Buy while maintaining their price targets.
Royal Caribbean shares gained more than 2.5% on Monday afternoon after Bank of America upgraded the company to Buy from Neutral and retained a $330 price target. Deutsche Bank also raised Royal Caribbean to Buy from Hold while keeping its $299 target.
Bank of America said travel spending had grown at a mid- to high-single-digit rate since February, while cruise spending accelerated to mid-teens growth in July and August.
The firm said Royal Caribbean commentary gave it confidence in at least 4% net yield growth in 4Q26. Bank of America also said the company could guide to its historical net yield growth range of 2% to 3% in 2027.
Royal Caribbean announced plans to take a 50% equity stake in Sandals. Bank of America estimated that Sandals could achieve stronger growth with the cruise operator’s expertise, potentially increasing Royal Caribbean’s earnings before interest, taxes, depreciation and amortization by a low- to mid-teens percentage.
The shares had declined for a seventh consecutive week following the Sandals announcement. Royal Caribbean stock had lost about 13% year to date.
