Citigroup Has Lowered Expectations for Royal Caribbean Cruises (NYSE:RCL) Stock Price

Key Points

• Citigroup cut its price target on Royal Caribbean Cruises from $362 to $327, but kept a buy rating on the stock. The new target still implies about 13.96% upside from the current price.
• Other analysts have also been adjusting expectations, with several lowering targets, while the overall consensus remains Moderate Buy. MarketBeat says the average price target across analysts is $345.05.
• Royal Caribbean recently reported strong quarterly results, including EPS of $3.60 versus $3.20 expected and 11.3% year-over-year revenue growth. The company also guided for Q2 2026 EPS of $3.83-$3.93 and FY 2026 EPS of $17.10-$17.50.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) had its target price reduced by equities researchers at Citigroup from $362.00 to $327.00 in a research report issued to clients and investors on Tuesday,Benzinga reports. The brokerage currently has a "buy" rating on the stock. Citigroup's target price points to a potential upside of 13.96% from the stock's current price.

Other equities analysts have also issued reports about the company. Barclays dropped their target price on Royal Caribbean Cruises from $351.00 to $340.00 and set an "overweight" rating for the company in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft set a $296.00 price target on Royal Caribbean Cruises in a report on Friday, May 1st. UBS Group dropped their price objective on shares of Royal Caribbean Cruises from $321.00 to $309.00 and set a "buy" rating for the company in a research note on Thursday, May 14th. Freedom Capital upgraded shares of Royal Caribbean Cruises to a "strong-buy" rating in a report on Wednesday, June 3rd. Finally, Zacks Research raised shares of Royal Caribbean Cruises from a "strong sell" rating to a "hold" rating in a research report on Thursday, June 18th. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $345.05.

Royal Caribbean Cruises Price Performance

Shares of RCL stock traded up $0.77 during midday trading on Tuesday, reaching $286.93. 734,697 shares of the company traded hands, compared to its average volume of 2,619,384. The firm's 50 day simple moving average is $287.36 and its two-hundred day simple moving average is $288.97. The firm has a market cap of $76.96 billion, a PE ratio of 17.51, a price-to-earnings-growth ratio of 1.02 and a beta of 1.76. The company has a debt-to-equity ratio of 1.96, a current ratio of 0.20 and a quick ratio of 0.17. Royal Caribbean Cruises has a 1-year low of $232.10 and a 1-year high of $366.50.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last issued its quarterly earnings data on Thursday, April 30th. The company reported $3.60 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.20 by $0.40. The firm had revenue of $4.45 billion during the quarter, compared to analysts' expectations of $4.46 billion. Royal Caribbean Cruises had a return on equity of 45.25% and a net margin of 24.36%.Royal Caribbean Cruises's revenue was up 11.3% on a year-over-year basis. During the same period in the previous year, the firm posted $2.71 earnings per share. Royal Caribbean Cruises has set its Q2 2026 guidance at 3.830-3.930 EPS and its FY 2026 guidance at 17.100-17.500 EPS. On average, equities research analysts expect that Royal Caribbean Cruises will post 17.29 EPS for the current fiscal year.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of hedge funds have recently made changes to their positions in the business. SOA Wealth Advisors LLC. boosted its position in shares of Royal Caribbean Cruises by 50.0% in the second quarter. SOA Wealth Advisors LLC. now owns 600 shares of the company's stock worth $191,000 after buying an additional 200 shares during the period. Merit Financial Group LLC lifted its position in Royal Caribbean Cruises by 29.7% during the 2nd quarter. Merit Financial Group LLC now owns 9,332 shares of the company's stock worth $2,963,000 after acquiring an additional 2,135 shares in the last quarter. Fortem Financial Group LLC acquired a new position in Royal Caribbean Cruises during the 2nd quarter worth approximately $447,000. Mission Wealth Management LP boosted its holdings in Royal Caribbean Cruises by 24.4% in the 2nd quarter. Mission Wealth Management LP now owns 1,514 shares of the company's stock worth $481,000 after acquiring an additional 297 shares during the period. Finally, Hughes Financial Services LLC grew its position in Royal Caribbean Cruises by 44.7% in the second quarter. Hughes Financial Services LLC now owns 178 shares of the company's stock valued at $57,000 after acquiring an additional 55 shares in the last quarter. Hedge funds and other institutional investors own 87.53% of the company's stock.

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises NYSE: RCL, operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean's ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.

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