Update shared on04 Sep 2025
Despite a less attractive near-term tactical setup following a sector rally, analysts cite strong demand, robust pricing, and superior margins as drivers for Royal Caribbean's long-term EPS and market share growth, resulting in the consensus price target remaining unchanged at $351.65.
Analyst Commentary
- Bullish analysts highlight strong forward demand, robust pricing, and optionality from land-based projects as drivers for increased price targets.
- Royal Caribbean is viewed as an "underappreciated" share gainer in the travel sector, with a superior value proposition supporting long-term market share gains.
- Industry annual revenue growth is estimated at approximately 7% through 2029, and Royal Caribbean is noted for "best-in-class" margins.
- Yield estimates are being revised higher due to favorable foreign exchange dynamics and sustained sector resilience after peer results.
- Despite a sector rally creating a less attractive near-term tactical setup, several analysts expect a “beat and raise” quarter and strong EPS potential ($27+/share possible by late 2027/2028).
What's in the News
- Royal Caribbean completed the repurchase of 1,008,055 shares for $229.8 million under its buyback program; no additional shares were repurchased in the most recent quarter.
- The company celebrated the delivery of Star of the Seas, its latest Icon Class ship powered by LNG, introducing new family-oriented amenities and sustainability features, with a debut scheduled in Port Canaveral.
- Expansion plans include the December debut of Royal Beach Club Paradise Island in The Bahamas, and additional new destinations through 2027.
- Royal Caribbean Cruises was dropped from multiple value-oriented Russell indexes, including the Russell 1000 Value, 3000 Value, 3000E Value, and Midcap Value indexes.
Valuation Changes
Summary of Valuation Changes for Royal Caribbean Cruises
- The Consensus Analyst Price Target remained effectively unchanged, at $351.65.
- The Consensus Revenue Growth forecasts for Royal Caribbean Cruises remained effectively unchanged, at 9.2% per annum.
- The Net Profit Margin for Royal Caribbean Cruises remained effectively unchanged, at 26.25%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.