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Investing.com - Stifel raised its price target on Royal Caribbean Cruises (NYSE:RCL) to $420.00 from $400.00 on Wednesday, while maintaining a Buy rating on the cruise operator’s stock. The new target represents the highest among analysts covering the company, which has seen its stock surge 115% over the past year and currently commands a market capitalization of $90.6 billion.
The price target increase comes as Stifel views the recent sell-off in Royal Caribbean shares as an opportunity for investors who missed the recent run-up in the stock price. According to InvestingPro data, 8 analysts have recently revised their earnings estimates upward for the upcoming period, though the stock appears to be trading above its Fair Value.
Stifel described Royal Caribbean as having "the best management team across the cruise industry" and projected "incredible EPS growth through 2028" for the company.
The research firm characterized Royal Caribbean’s second-half 2025 guidance as "incredibly conservative," suggesting potential upside to current consensus estimates as the year progresses.
Stifel also indicated it was raising its 2026/2027 EBITDA estimates for Royal Caribbean, citing "continued strength in booking/pricing patterns" for the cruise line operator.
In other recent news, Royal Caribbean Cruises reported second-quarter earnings that surpassed expectations, with adjusted earnings per share (EPS) of $4.38, exceeding the forecast of $4.08 by 7.35%. However, the company’s revenue slightly missed expectations, coming in at $4.54 billion compared to the anticipated $4.55 billion. Despite this minor revenue miss, the earnings beat was notable. Analysts at Bernstein SocGen Group reiterated their Outperform rating with a $360 price target, while Truist Securities maintained a Hold rating with a $337 price target, citing mixed quarterly results. Mizuho (NYSE:MFG) raised its price target for Royal Caribbean to $372, maintaining an Outperform rating, but highlighted market concerns over the second-half outlook. The company’s third-quarter yield growth guidance of 2-2.5% was viewed as disappointing by some investors. The stock has been scrutinized due to its significant year-to-date gains, leading to heightened expectations. These developments reflect a complex landscape for Royal Caribbean amid varying analyst perspectives and investor sentiment.
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