Mizuho Securities analyst Benjamin Chaiken has maintained their bullish stance on RCL stock, giving a Buy rating yesterday.
Benjamin Chaiken has given his Buy rating due to a combination of factors that highlight Royal Caribbean’s strategic positioning and growth potential. The company aims to differentiate itself from competitors by developing unique experiences through its private island destinations, such as Nassau, Cozumel, and Perfect Day Mexico. These destinations are expected to significantly enhance market share and attract more customers from the broader $2 trillion vacation industry.
Furthermore, Royal Caribbean has set an ambitious goal of achieving a 20% compound annual growth rate in earnings per share by 2027, which does not account for potential share buybacks or contributions from Perfect Day Mexico. This growth target is seen as a conservative estimate, with opportunities for further upside. Despite recent stock price declines, Chaiken believes these are more reflective of broader market conditions rather than the company’s outlook, supporting the Buy rating with a price target of $277 based on projected EBITDA for 2026.
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.