Royal Caribbean Cruises (NYSE:RCL) Downgraded by Freedom Capital to Hold

Key Points

• Freedom Capital downgraded Royal Caribbean Cruises from “strong buy” to “hold,” although the broader analyst consensus remains “Moderate Buy” with an average price target of $350.50.
• Royal Caribbean reported quarterly earnings of $4.21 per share, exceeding estimates of $3.98, while revenue rose 6.5% year over year to $4.83 billion. Management maintained its 2026 adjusted EPS outlook of $17.73–$17.87.
• Shares opened at $322.15, near the upper end of their 52-week range, as strong bookings and premium demand support growth; however, elevated debt, fuel costs, capital spending and a reduced revenue-growth outlook pose risks.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) was downgraded by stock analysts at Freedom Capital from a "strong-buy" rating to a "hold" rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

Several other research analysts have also issued reports on the company. Weiss Ratings reiterated a "buy (b-)" rating on shares of Royal Caribbean Cruises in a report on Thursday, June 18th. Deutsche Bank Aktiengesellschaft set a $296.00 price objective on shares of Royal Caribbean Cruises in a report on Friday, May 1st. Susquehanna raised their price target on shares of Royal Caribbean Cruises from $350.00 to $372.00 and gave the company a "positive" rating in a research report on Wednesday. Wells Fargo & Company lifted their price target on Royal Caribbean Cruises from $361.00 to $388.00 and gave the company an "overweight" rating in a research note on Wednesday. Finally, Loop Capital initiated coverage on Royal Caribbean Cruises in a report on Monday, June 1st. They set a "hold" rating and a $304.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have issued a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $350.50.

Royal Caribbean Cruises Trading Down 0.4%

Shares of RCL stock opened at $322.15 on Wednesday. The stock has a market cap of $86.40 billion, a price-to-earnings ratio of 19.91, a PEG ratio of 1.12 and a beta of 1.76. The stock has a 50-day moving average of $294.60 and a 200-day moving average of $289.60. The company has a current ratio of 0.21, a quick ratio of 0.17 and a debt-to-equity ratio of 2.03. 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 posted its quarterly earnings data on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, topping the consensus estimate of $3.98 by $0.23. The company had revenue of $4.83 billion during the quarter, compared to analysts' expectations of $4.82 billion. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. Royal Caribbean Cruises's revenue for the quarter was up 6.5% compared to the same quarter last year. During the same period in the prior year, the company posted $4.38 earnings per share. 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, equities research analysts forecast that Royal Caribbean Cruises will post 17.74 earnings per share for the current year.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several institutional investors have recently added to or reduced their stakes in RCL. Montag A & Associates Inc. grew its position in shares of Royal Caribbean Cruises by 184.4% during the 4th quarter. Montag A & Associates Inc. now owns 91 shares of the company's stock valued at $25,000 after acquiring an additional 59 shares during the period. Ares Financial Consulting LLC bought a new position in shares of Royal Caribbean Cruises during the 4th quarter worth $26,000. University of Texas Texas AM Investment Management Co. bought a new stake in Royal Caribbean Cruises in the 4th quarter valued at about $26,000. IMG Wealth Management Inc. purchased a new stake in Royal Caribbean Cruises during the first quarter valued at about $27,000. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of Royal Caribbean Cruises during the 4th quarter valued at approximately $27,000. Institutional investors own 87.53% of the company's stock.

Key Headlines Impacting Royal Caribbean Cruises

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

• Positive Sentiment: Royal Caribbean reported second-quarter adjusted earnings of $4.21 per share, above the $3.98 analyst consensus, while revenue of $4.83 billion broadly matched estimates and increased 6.5% year over year. Royal Caribbean earnings and outlook article
• Positive Sentiment: Management maintained its 2026 adjusted EPS outlook of $17.73–$17.87 and reiterated 1.75%–2.25% net yield growth. Record booking volumes and pricing, particularly from higher-margin guests, support continued earnings momentum. Royal Caribbean 2026 forecast article
• Positive Sentiment: Investors continue to point to premium offerings, private destinations, fleet expansion, river cruises and substantial share repurchases—including approximately $1 billion in first-half buybacks—as longer-term catalysts. Royal Caribbean growth drivers article
• Neutral Sentiment: Royal Caribbean appears relatively insulated from weaker consumer vacation demand because affluent travelers are continuing to pay for cruises and premium experiences. Analysts comparing RCL with Carnival see resilient demand and strong bookings across the industry. Royal Caribbean cruise pricing article
• Negative Sentiment: Royal Caribbean reduced its 2026 revenue-growth outlook from 10% to approximately 9% and narrowed reported net-yield guidance, partly reflecting itinerary changes and geopolitical effects on bookings. European cruise demand also faces potential headwinds. Royal Caribbean Q2 outlook article
• Negative Sentiment: Higher fuel costs, roughly $23 billion of debt and heavy capital spending create downside risks if travel demand weakens. Morgan Stanley raised its target to $300 but kept an “equal weight” rating, implying the current valuation already reflects much of the company’s growth outlook. Morgan Stanley Royal Caribbean price target report

About Royal Caribbean Cruises

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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