Royal Caribbean Group (NYSE: RCL) Price Target Raised by BofA Securities
Key points
- BofA Securities raised its price target for Royal Caribbean Group to $365.
- Royal Caribbean Group aims for adjusted earnings per share in the $20 range by 2027.
- The company reported strong booking volumes and expects 4.5% capacity growth next year.
Royal Caribbean Group (NYSE: RCL) operates cruise sailings. BofA Securities raised its price target to $365. At $335.18 when the target was posted, the stock stood about 8.9% below it.
The higher target comes as Royal Caribbean Group targets adjusted earnings per share in the $20 range for 2027 under its Perfecta program. Stronger bookings, capacity growth and operating efficiencies support the goal, as highlighted by Zacks Investment Research. In its third-quarter 2026 update, Royal Caribbean Group said it remained on track based on the current forward fuel-price curve.
Recent booking volumes grew in the mid-teens year over year, and bookings for 2027 sailings rose in the high teens. Booked positions for 2026 and 2027 reached records. Royal Caribbean Group expects capacity to grow 4.5% next year, though fuel costs and roughly 200 basis points of yield headwinds in the first quarter of 2027 could challenge the earnings goal.
Royal Caribbean Group gained nearly 16% in October after strong third-quarter results and upbeat analyst views, as highlighted by The Motley Fool. Net income and earnings guidance exceeded analyst projections. Before the earnings release, Jefferies upgraded Royal Caribbean Group to buy from hold and raised its price target to $330 from $305 per share.
Royal Caribbean Group traded at $335.18, down $4.67, or 1.37%. Its 52-week range was $222.22 to $356.39, and its market capitalization was $89.65 billion. Trading volume was 2.2 million shares.
