Royal Caribbean price target raised to $265 from $240 at BofA

BofA raised the firm’s price target on Royal Caribbean (RCL) to $265 from $240 and keeps a Neutral rating on the shares after the company reported “strong” Q4 EPS of $1.63 that beat the firm’s and Street estimates and guided to FY25 EPS of $14.35-$14.65, versus the Street at $14.49. Shares meaningfully outperformed yesterday on these results and the announcement it will enter the “high margin” river market in 2027, adds the analyst, who raised the firm’s 2025 EPS estimate to $14.87 from $14.05. There are “many things that we do not know” about Royal’s river business, such as ship size, where they have docking rights, how many ships they plan for Europe, and the specific product offerings, but “given what we know today about the RCL offering, it is difficult to say” Viking (VIK) will be meaningfully impacted, even though this is “new, more formidable competition,” the analyst added. The firm maintains a Buy rating on Viking shares.