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Investing.com - Truist Securities lowered its price target on Royal Caribbean Cruises (NYSE:RCL) to $333.00 from $337.00 on Friday, while maintaining a Hold rating on the cruise operator’s stock. According to InvestingPro data, RCL currently trades at $325.81, with a market capitalization of $88.5 billion and demonstrates strong financial health with a perfect Piotroski Score of 9.
The price target reduction primarily stems from higher expectations for taxes in 2026, according to Truist’s research note. The firm acknowledged Royal Caribbean’s strong self-help initiatives, specifically mentioning the company’s well-received river cruise offering.
Truist downgraded Royal Caribbean to Hold two months ago, citing the stock’s significant price appreciation. The firm noted RCL shares had approximately doubled over a three-month period compared to the S&P 500’s 11% gain, and had risen about 50% year-to-date versus the broader market’s 13% increase.
The research firm also highlighted Royal Caribbean’s impressive performance in previous years, with gains of approximately 80% in 2024 and 160% in 2023, substantially outperforming the S&P 500’s 24% returns in both years.
Truist expressed reluctance to assign a Buy rating to Royal Caribbean, stating it would require assigning a target P/E multiple comparable to Marriott (NYSE:MAR), which it views as inappropriate given Royal Caribbean’s asset-heavy business model compared to Marriott’s asset-light, globally diversified hotel operations.
In other recent news, Royal Caribbean Group announced an increase in its quarterly dividend to $1.00 per share, reflecting the company’s strong performance and commitment to returning capital to shareholders. This decision was highlighted by the company’s President and CEO, Jason Liberty. Additionally, Tigress Financial Partners raised its price target for Royal Caribbean to $415, maintaining a Buy rating, citing strong demand and the company’s strategic investments as key factors. William Blair also reiterated its Outperform rating on Royal Caribbean, noting structural growth factors and favorable demographic trends. Stifel echoed a positive outlook, maintaining a Buy rating with a $420 price target, after meeting with the company’s management and discussing ambitious fiscal year targets. These developments underscore the company’s robust growth prospects and strategic initiatives in the cruise industry.
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