Stifel reiterates Royal Caribbean stock rating on demand strength

Stifel has reaffirmed its Buy rating and raised its price target to $415.00 for Royal Caribbean Cruises (NYSE: RCL) ahead of the company's upcoming third-quarter 2026 earnings release. Currently trading at a P/E ratio of 17.3 and a PEG ratio of 0.84, Royal Caribbean appears to be undervalued relative to its growth prospects. The investment platform provides further insights through its Pro Research Report, which is one of over 1,400 available for US equities.

Analysts anticipate that Royal Caribbean will surpass expectations and increase its guidance when it reports later this month, given continued strong close-in and onboard metrics. Six analysts have recently revised their earnings estimates upwards for the upcoming period, with the company set to report on October 27.

Stifel believes that booking patterns remain robust, with a notable increase in close-in demand and onboard spending. Recent concerns regarding potential erosion in 2027 and 2028 pricing and demand, as well as elevated Caribbean promotions, appear to be overstated based on discussions with industry agents and operators. Stifel does not anticipate that Royal Caribbean will provide detailed guidance for 2027 at this time, but they anticipate that the company may offer insights into its thinking for the following year.

Positive out-year booking commentary, combined with additional details on Sandals, PDM, and Perfecta, could potentially drive shares higher between now and year-end. The stock's price could also be influenced by fuel prices.

Recently, other financial analysts have also upgraded Royal Caribbean Cruises' stock rating, reflecting positive sentiment about its future prospects. For instance, Jefferies upgraded the stock from Hold to Buy, projecting a third-quarter 2026 revenue of $5.58 billion and a full-year 2027 revenue forecast of $21.0 billion. Deutsche Bank upgraded the stock to Buy, citing a favorable risk/reward profile following a 26% decline since early August.

Tigress Financial reiterated its Buy rating, highlighting a strategic partnership with Sandals and Beaches Resorts to capture a larger share of global vacation spending. BofA Securities moved the stock from Neutral to Buy, emphasizing the stock's valuation aspects, noting that its enterprise value to EBITDA multiple has fallen below historical averages.

JPMorgan increased its price target to $394, maintaining an Overweight rating based on a positive yield outlook.