Bank of America Upgrades Royal Caribbean Cruises (NYSE:RCL) to Buy

Royal Caribbean Cruises (NYSE:RCL) was upgraded by investment analysts at Bank of America from a “neutral” rating to a “buy” rating in a report released on Monday, September 28th, Marketbeat.com reports. The firm currently has a $330.00 target price on the stock. Bank of America‘s price target suggests a potential upside of 17.08% from the stock’s current price.

Several other equities analysts have also recently weighed in on RCL. Freedom Capital cut Royal Caribbean Cruises from a “strong-buy” rating to a “hold” rating in a report on Wednesday, July 29th. Zacks Research upgraded shares of Royal Caribbean Cruises from a “strong sell” rating to a “hold” rating in a research report on Thursday, June 18th. Weiss Ratings downgraded shares of Royal Caribbean Cruises from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, September 3rd. Wells Fargo & Company increased their price objective on shares of Royal Caribbean Cruises from $361.00 to $388.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 29th. Finally, Tigress Financial restated a “buy” rating and set a $425.00 target price on shares of Royal Caribbean Cruises in a research report on Monday, September 28th. One research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $357.45.

Royal Caribbean Cruises Stock Up 0.2%

Shares of Royal Caribbean Cruises stock opened at $281.87 on Monday. The company has a 50-day simple moving average of $278.04 and a two-hundred day simple moving average of $281.60. Royal Caribbean Cruises has a 52-week low of $222.22 and a 52-week high of $356.39. The company has a debt-to-equity ratio of 2.03, a quick ratio of 0.19 and a current ratio of 0.21. The stock has a market capitalization of $75.39 billion, a PE ratio of 17.42, a price-to-earnings-growth ratio of 1.00 and a beta of 1.82.

Royal Caribbean Cruises (NYSE:RCL) last announced its quarterly earnings data on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, topping analysts’ consensus estimates of $3.98 by $0.23. The company had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.82 billion. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The firm’s revenue for the quarter was up 6.5% on a year-over-year basis. During the same period in the previous year, the business earned $4.38 EPS. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS. On average, analysts anticipate that Royal Caribbean Cruises will post 17.79 EPS for the current fiscal year.

Insider Transactions at Royal Caribbean Cruises

In related news, CEO Michael Bayley sold 12,811 shares of the business’s stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total value of $4,048,147.89. Following the completion of the transaction, the chief executive officer owned 45,297 shares of the company’s stock, valued at $14,313,399.03. The trade was a 22.05% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. 6.44% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several institutional investors and hedge funds have recently added to or reduced their stakes in RCL. Bank of America Corp DE purchased a new stake in Royal Caribbean Cruises during the 2nd quarter valued at about $321,332,000. TD Asset Management Inc boosted its holdings in shares of Royal Caribbean Cruises by 29.7% during the 4th quarter. TD Asset Management Inc now owns 877,659 shares of the company’s stock worth $244,797,000 after purchasing an additional 201,014 shares during the last quarter. Capital International Sarl raised its holdings in shares of Royal Caribbean Cruises by 19.3% during the 4th quarter. Capital International Sarl now owns 363,713 shares of the company’s stock worth $101,447,000 after acquiring an additional 58,734 shares during the period. Proficio Capital Partners LLC acquired a new position in shares of Royal Caribbean Cruises during the 2nd quarter valued at about $650,000. Finally, State of Michigan Retirement System acquired a new position in Royal Caribbean Cruises in the 1st quarter valued at about $18,080,000. Hedge funds and other institutional investors own 87.53% of the company’s stock.

Trending Headlines about Royal Caribbean Cruises

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Sandals partnership broadens growth opportunities. Royal Caribbean’s investment gives it exposure to the all-inclusive resort market alongside its cruise operations. Analysts see potential cross-selling between cruise passengers and Sandals guests, with Jefferies estimating the venture could add approximately $159 million, or about $0.59 per share, to 2027 earnings. What the Sandals Deal Means for Royal Caribbean’s Next Leg of Growth?
• Positive Sentiment: Jefferies upgraded RCL to Buy. The firm raised its price target to $330 from $305 and increased its 2027 net-yield growth forecast to 3.3% from 2.9%, citing stronger pricing and demand. Jefferies upgrades Royal Caribbean on stronger yield growth outlook
• Positive Sentiment: Core cruise demand remains strong. Elevated bookings for 2027, firmer ticket pricing, and increased onboard spending support expectations for continued revenue and earnings growth. Analysts also anticipate double-digit bottom-line growth in the upcoming third quarter. What to Expect From Royal Caribbean Cruises’ Q3 2026 Earnings Report
• Positive Sentiment: Dividend growth adds to shareholder appeal. Royal Caribbean has been rebuilding its dividend and recently raised the payout substantially, although investors should consider the company’s debt burden before focusing solely on yield. Dividend comparison
• Neutral Sentiment: Third-quarter results are scheduled for October 27. The earnings call could provide updates on booking trends, pricing, fuel costs, and the Sandals transaction. Royal Caribbean third-quarter earnings call announcement
• Negative Sentiment: Debt and fuel costs are key risks. Funding the Sandals investment with borrowing could increase interest expense and leverage, while higher oil prices could pressure cruise margins. The deal also carries execution risk because RCL will share ownership and control with its partner.
• Negative Sentiment: Valuation and bearish hedging warrant caution. Some analysts question whether the cruise recovery is already reflected in the share price, and unusually heavy put-option activity suggests that some traders are positioning for downside. Has the Market Already Priced in the Cruise Recovery?

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd., now known as Royal Caribbean Group, is a global cruise company that operates vacation experiences through a portfolio of cruise brands. Its principal brands include Royal Caribbean International, Celebrity Cruises and Silversea Cruises, each serving different segments of the leisure travel market, from family-oriented cruises and large-scale resort-style ships to premium and luxury expedition voyages.

The company offers cruises to destinations around the world, including the Caribbean, Europe, Alaska, Asia, Australia, New Zealand and other international regions.