Royal Caribbean shares rise after two analyst upgrades
Bank of America and Deutsche Bank moved Royal Caribbean Group to Buy, citing travel demand, valuation and the planned Sandals Resorts partnership.
Royal Caribbean Group shares gained more than 2.5% in Monday afternoon trading after Bank of America and Deutsche Bank upgraded the cruise company to Buy. The shares were reported to be 26% below their August 5 closing peak.
Bank of America analyst Andrew Didora raised his rating from Neutral while maintaining a $330 price target. Didora said recent comments from Royal Caribbean management gave the bank confidence that net yield growth would reach at least 4% in the fourth quarter of 2026.
Didora also pointed to Royal Caribbean’s announced plan to invest $3 billion in a joint venture in exchange for a 50% equity stake in Sandals Resorts. He estimated that the partnership could contribute about $900 million in EBITDA by the end of the decade.
Deutsche Bank analyst Chris Woronka upgraded the shares from Hold and retained a $299 price target. Woronka noted that fuel expenses had increased since conflict began in the Middle East, but said they accounted for about 7% of revenue at current prices. Both banks cited resilient travel spending, a more appealing valuation and the strategic rationale for the Sandals transaction.
