Update shared on19 Sep 2025
Fair value Increased 1.20%Analysts have raised Royal Caribbean Cruises' price target to $355.87, citing strong forward demand, robust pricing power, industry-leading margins, and accretive land-based initiatives, while recent share gains leave some caution on tactical positioning.
Analyst Commentary
- Bullish analysts cite strong forward demand and robust pricing power driving significant upward EPS revisions for Royal Caribbean through 2027/2028.
- Royal Caribbean is distinguished by "best-in-class" margins and structural advantages within the cruise industry, supporting sustained long-term revenue growth.
- Increasing investor optimism stems from the company’s optionality around land-based projects, viewed as accretive to the core business.
- Sector-wide tailwinds—including resilient yields, favorable foreign exchange rates, and improved industry outlook—are enhancing profitability expectations.
- Recent share gains and a perceived undervaluation compared to peers highlight further upside potential, but some analysts note a less favorable tactical setup following a sector-wide rally.
What's in the News
- Board declared a quarterly dividend of $1.00 per common share, payable to shareholders of record at the close of business on September 25.
- Company completed the repurchase of 1,008,055 shares for $229.8 million under the buyback program announced earlier in the year.
- Official delivery of the new Icon Class ship, Star of the Seas, with LNG power and advanced environmental features, ahead of its August debut; plans for additional LNG-powered ships and new destinations announced.
- Royal Caribbean Cruises dropped from multiple Russell Value indexes, including the Russell 1000, 3000, and Midcap Value indexes.
Valuation Changes
Summary of Valuation Changes for Royal Caribbean Cruises
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $351.65 to $355.87.
- The Future P/E for Royal Caribbean Cruises remained effectively unchanged, moving only marginally from 21.68x to 21.94x.
- The Consensus Revenue Growth forecasts for Royal Caribbean Cruises remained effectively unchanged, at 9.2% per annum.
Disclaimer
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