Royal Caribbean Cruises (NYSE:RCL) Upgraded at Freedom Broker

Key Points

• Freedom Broker upgraded Royal Caribbean Cruises to “buy” from “hold” and raised its price target to $379 from $351, implying approximately 27% upside.
• Analyst sentiment is broadly positive: 22 analysts rate the stock “buy” and seven “hold,” producing a consensus “Moderate Buy” rating and a $355 target price.
• Royal Caribbean reported quarterly EPS of $6.57, beating expectations, while revenue increased 8.8% year over year to $5.59 billion; strong booking demand and raised guidance support the bullish outlook, though higher fuel costs remain a risk.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) was upgraded by investment analysts at Freedom Broker from a "hold" rating to a "buy" rating in a research report issued to clients and investors on Wednesday, Benzinga reports. The brokerage currently has a $379.00 price target on the stock, up from their prior price target of $351.00. Freedom Broker's target price would indicate a potential upside of 27.06% from the company's current price.

A number of other research firms also recently weighed in on RCL. Barclays upped their target price on Royal Caribbean Cruises from $337.00 to $350.00 and gave the company an "overweight" rating in a research report on Wednesday. JPMorgan Chase & Co. boosted their price target on Royal Caribbean Cruises from $345.00 to $394.00 and gave the company an "overweight" rating in a research note on Thursday, September 24th. BMO Capital Markets reiterated an "outperform" rating and set a $370.00 price objective on shares of Royal Caribbean Cruises in a research note on Wednesday, September 23rd. Freedom Capital downgraded shares of Royal Caribbean Cruises from a "strong-buy" rating to a "hold" rating in a report on Wednesday, July 29th. Finally, Truist Financial increased their price target on shares of Royal Caribbean Cruises from $297.00 to $298.00 and gave the stock a "hold" rating in a research report on Thursday, September 24th. Twenty-two research analysts have rated the stock with a Buy rating and seven have issued a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $355.00.

Royal Caribbean Cruises Stock Performance

Shares of RCL traded up $2.36 during mid-day trading on Wednesday, hitting $298.28. 2,429,073 shares of the company's stock were exchanged, compared to its average volume of 2,545,525. Royal Caribbean Cruises has a 52 week low of $222.22 and a 52 week high of $356.39. The stock's 50-day simple moving average is $271.36 and its 200-day simple moving average is $286.74. The firm has a market cap of $79.77 billion, a price-to-earnings ratio of 18.43, a price-to-earnings-growth ratio of 0.97 and a beta of 1.82. The company has a quick ratio of 0.19, a current ratio of 0.21 and a debt-to-equity ratio of 2.03.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings results on Tuesday, October 27th. The company reported $6.57 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.38 by $0.19. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%. The business had revenue of $5.59 billion during the quarter, compared to analysts' expectations of $5.61 billion. During the same period in the previous year, the company posted $5.75 earnings per share. The firm's revenue for the quarter was up 8.8% compared to the same quarter last year. On average, equities research analysts expect that Royal Caribbean Cruises will post 17.78 EPS for the current year.

Institutional Investors Weigh In On Royal Caribbean Cruises

A number of hedge funds have recently made changes to their positions in RCL. BlackRock Inc. bought a new position in Royal Caribbean Cruises in the 2nd quarter valued at approximately $6,549,422,000. State Street Corp boosted its position in Royal Caribbean Cruises by 2.6% in the second quarter. State Street Corp now owns 10,689,134 shares of the company's stock valued at $3,409,971,000 after buying an additional 270,930 shares in the last quarter. Primecap Management Co. CA bought a new stake in shares of Royal Caribbean Cruises during the second quarter worth $669,804,000. Jupiter Topco LLC bought a new stake in shares of Royal Caribbean Cruises during the second quarter worth $597,350,000. Finally, Dimensional Fund Advisors LP increased its holdings in shares of Royal Caribbean Cruises by 2.0% during the first quarter. Dimensional Fund Advisors LP now owns 1,957,044 shares of the company's stock worth $538,393,000 after buying an additional 38,748 shares in the last quarter. 87.53% of the stock is currently owned by institutional investors and hedge funds.

Royal Caribbean Cruises News Roundup

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

• Positive Sentiment: Q3 earnings beat expectations. Adjusted EPS was $6.57, above the $6.38 consensus and up from $5.75 a year earlier. Revenue rose 8.8% to $5.59 billion, broadly in line with estimates, while strong close-in demand and favorable cost timing supported profitability. Royal Caribbean Group Reports Third Quarter Results
• Positive Sentiment: Royal Caribbean raised its 2026 outlook. The company now expects adjusted EPS of $17.85 to $17.95, reflecting the quarterly outperformance and booking strength, although higher fuel costs partially offset the increase. RCL Q3 Earnings Beat Estimates
• Positive Sentiment: Demand trends remain encouraging. Booking volumes reportedly increased in the mid-teens year over year, with strong demand for 2027 sailings and no clear signs that consumers are reducing vacation spending. Q3 Earnings Call Highlights
• Positive Sentiment: Analyst support increased. Wells Fargo raised its price target to $361 and maintained an “overweight” rating, while Susquehanna lifted its target to $360. Wells Fargo Price Target
• Positive Sentiment: Expansion broadens the vacation platform. Royal Caribbean unveiled a $3 billion deal for a 50% stake in Sandals Resorts, including access to a 1,000-acre beachfront land bank. The investment could create additional resort and vacation-package growth opportunities. Royal Caribbean Sandals Deal
• Neutral Sentiment: Revenue came in slightly below one estimate, and investors continue to monitor whether pricing and onboard yields can keep pace with booking growth. RCL Stock Rallies as Outlook Lifts
• Negative Sentiment: Higher fuel costs remain a headwind, while unusually heavy put-option activity signals that some traders are positioning for downside or heightened volatility. Royal Caribbean Earnings and Fuel Costs

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises Ltd., doing business as Royal Caribbean Group NYSE: RCL, is a global cruise company that operates vacation cruises and related travel experiences. Its fleet visits destinations across the Caribbean, Europe, Alaska, Asia, Australia, and other regions, with itineraries that typically include onboard entertainment, dining, accommodations, recreational activities, and shore excursions.

The company's principal brands include Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.

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