What is Wall Street analysts’ target price for Royal Caribbean stock?

Royal Caribbean Cruises Ltd. (RCL) operates a global network of ships, providing memorable travel experiences to popular destinations around the world. The company’s diverse fleet combines innovation, comfort and entertainment, offering a range of cruise options to suit different traveler preferences.

She oversees several major brands, including Royal Caribbean International, Celebrity Cruises and Silversea Cruises. By placing sustainability and customer experience at its core, the company continues to innovate in the modern cruise industry. Royal Caribbean Cruises is headquartered in Miami, Florida. The company has a market capitalization of $72.26 billion.

Based on post-pandemic demand for cruises, Royal Caribbean stock has gained 12.2% over the past 52 weeks. However, recently the stock has been falling. Over the last three months, the drop was 13%. The stock had hit a 52-week high of $366.50 in August, but is down 28.1% from that level.

The S&P 500 Index ($SPX) gained 14.1% and 7.4%, respectively, during the same periods, reflecting the stock’s underperformance relative to the broader market. The nature of Royal Caribbean’s business classifies it as a consumer discretionary stock. Comparing it with the SPDR Consumer Discretionary Select Sector Fund (XLY), we see that the ETF is up 9.2% over the past 52 weeks, underperforming RCL stock. However, it has gained 6.8% over the past three months, outperforming the stock.

On October 28, Royal Caribbean reported its third-quarter results for fiscal 2025. The company reported higher-than-expected closing demand and lower costs, which improved its financial results. Its total revenue rose 5.2% year-over-year (YOY) to $5.14 billion, missing Wall Street analysts’ estimate of $5.16 billion.

The company’s third-quarter capacity increased 2.9% year-over-year, while load factor was 112%. Royal Caribbean’s adjusted EPS came in at $5.75, up 10.6% from the year-ago period and above the $5.68 estimated by analysts.

Based on these strong results, the company raised its full-year adjusted EPS guidance to a range of $15.58 to $15.63, reflecting 32% year-over-year growth. Royal Caribbean remains focused on expanding its portfolio of exclusive destinations, improving technology integration and attracting new travelers.

For fiscal 2025, which ends in December 2025, Wall Street analysts expect Royal Caribbean’s EPS to increase 32.5% year-over-year to $15.64 on a diluted basis. Additionally, EPS is expected to grow 14.5% annually to $17.91 in fiscal 2026. The company has a strong history of beating consensus estimates, beating them in the last four quarters.

Among the 24 Wall Street analysts who study Royal Caribbean’s stock, the consensus is a “moderate buy.” This is based on 16 “Strong Buy,” one “Moderate Buy,” and seven “Hold” ratings. The rating pattern has remained the same over the past three months.

Last month, Stifel analyst Steven Wieczynski maintained Royal Caribbean’s stock with a “Buy” rating, while lowering the price target from $420 to $400. JP Morgan analyst Matthew Boss also maintained an “overweight” rating on the stock, while lowering the price target from $367 to $357.

Royal Caribbean’s average price target of $340.35 indicates an upside of 29.1% from current market prices. The high price target of $415 implies a potential upside of 57.5%.

As of the date of publication, Anushka Mukherjee had (directly or indirectly) no position in any of the securities mentioned in this article. All information and data contained in this article are for informational purposes only. This article was originally published on Barchart.com