The notable increase in Royal Caribbean Cruises' consensus price target appears primarily driven by an upward revision in its future P/E multiple rather than stronger revenue growth expectations, resulting in a new fair value estimate of $328.42 per share.
What's in the News
- Royal Caribbean welcomed Star of the Seas, its latest Icon Class ship powered by LNG, further advancing environmental initiatives and setting the stage for its goal of a net-zero cruise ship by 2035; Legend of the Seas, another LNG-powered Icon Class ship, is set to debut in 2026.
- The company continues destination expansion, with Royal Beach Club Paradise Island opening December 2025, Royal Beach Club Cozumel in 2026, Perfect Day Mexico in fall 2027, and a South Pacific destination in Lelepa in 2027.
- Star of the Seas will debut an extensive entertainment and dining lineup, including exclusive shows like "Back to the Future: The Musical," five signature productions, over 40 dining and drink options, and multiple themed neighborhoods for varied guest experiences.
- Royal Caribbean Cruises Ltd. was dropped from several Russell value indexes, including Russell Midcap Value, Russell 1000 Value, Russell 3000 Value, and related benchmarks.
- Q2 2025 earnings results are expected to be reported on July 29, 2025.
Valuation Changes
Summary of Valuation Changes for Royal Caribbean Cruises
- The Consensus Analyst Price Target has risen from $306.43 to $328.42.
- The Future P/E for Royal Caribbean Cruises has risen from 21.74x to 23.15x.
- The Consensus Revenue Growth forecasts for Royal Caribbean Cruises remained effectively unchanged, moving only marginally from 9.3% per annum to 9.4% per annum.
Disclaimer
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