In a report released yesterday, Matthew Boss from J.P. Morgan maintained a Buy rating on Royal Caribbean (RCL – Research Report), with a price target of $298.00.
Matthew Boss has given his Buy rating due to a combination of factors that highlight Royal Caribbean’s promising growth trajectory. The company has set ambitious financial targets, aiming for a 20% compound annual growth rate in adjusted earnings per share by the end of 2027, which is significantly higher than its past performance. This growth is supported by the ‘Perfecta’ Performance Program, which outlines strategies for moderate capacity and yield growth, along with strong cost discipline.
Additionally, Royal Caribbean is positioned as a growth company with a strategic focus on value, convenience, and market expansion. The cruise industry currently holds a small market share in the broader vacation market, presenting a substantial opportunity for growth. The company’s commitment to generating significant cash flow and maintaining a strong balance sheet, coupled with potential share repurchases, further supports the Buy rating. These elements, combined with the company’s industry-leading net promoter scores and competitive destination portfolio, make Royal Caribbean a compelling investment opportunity.
In another report released today, Loop Capital Markets also upgraded the stock to a Buy with a $250.00 price target.
Based on the recent corporate insider activity of 55 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RCL in relation to earlier this year.