Royal Caribbean (RCL) Stock Receives Dual Analyst Upgrades Before Carnival Results

Key Takeaways

• Two prominent financial institutions—Deutsche Bank and Bank of America—elevated Royal Caribbean (RCL) to Buy status Monday.
• RCL shares have declined 26% from their August 5 peak.
• Tigress Financial maintained its Buy recommendation, highlighting the potential Sandals Resorts collaboration.
• Carnival (CCL) is scheduled to release Q3 financial results Tuesday, serving as a bellwether for cruise industry performance.
• Wall Street forecasts Carnival’s adjusted profit to decline to $1.35 per share from $1.43 in the prior-year period.

Shares of Royal Caribbean (RCL) edged down slightly to $242.43 during Monday trading, following Friday’s 1.6% advance that closed at $242.70. The movement occurred as two leading financial institutions adopted a more optimistic stance on the cruise operator just ahead of competitor Carnival’s quarterly disclosure.

Royal Caribbean Cruises Ltd., RCL

Both Deutsche Bank and Bank of America revised their outlook on Royal Caribbean to Buy Monday. Each institution referenced the stock’s substantial retreat from early August levels as justification for an improved risk-reward profile.

Since reaching its August 5 high, Royal Caribbean stock has tumbled 26%. The shares currently show a year-to-date loss of approximately 13% and have dropped beneath both the 50-day and 200-day moving average indicators.

Deutsche Bank maintained its $299 price objective. The institution suggested the recent downturn offers investors a more favorable entry position compared to earlier in 2025.

Bank of America’s Andrew Didora elevated his recommendation to Buy from Neutral while establishing a $330 price objective. In his client communication, he characterized Royal Caribbean as a “high quality business.”

Catalysts Behind Analyst Confidence

Didora highlighted the company’s prospective Sandals Resorts investment as a significant expansion catalyst. His calculations suggest the arrangement could contribute $900 million in Ebitda by decade’s end.

“The macro is a risk, but travel spend has been very strong, estimates seem reasonable, and RCL is well positioned to capture further travel share,” Didora wrote.

Tigress Financial Partners also issued commentary Monday. The firm confirmed its Buy recommendation while maintaining a $425 price objective—the most aggressive target among analysts referenced.

Tigress emphasized that the Sandals and Beaches Resorts alliance enhances Royal Caribbean’s competitive standing in worldwide vacation expenditures. The firm added that the stock’s retreat presents a compelling long-term accumulation opportunity.

According to Tigress, RCL currently trades at a P/E multiple of 15.01 and appears undervalued relative to its intrinsic worth estimate. This assessment draws from InvestingPro’s fundamental analysis.

Tigress further noted the Sandals transaction introduces premium resort income streams at 10 times Ebitda. The firm anticipates the partnership will enhance customer retention and lifetime guest revenue generation.

Carnival Results Cast Shadow Over Industry

Carnival (CCL) is set to announce third-quarter performance metrics before market open Tuesday. Consensus estimates call for adjusted earnings of $1.35 per share, representing a decline from the $1.43 recorded in the comparable year-ago quarter.

Revenue projections indicate 3% growth to $8.39 billion, per FactSet data. Carnival shares slipped 0.6% to $22.10 Monday.

The cruise sector has navigated challenging conditions throughout the year. Elevated fuel expenses linked to U.S.-Iran tensions, a hantavirus outbreak concern, and consumers opting for domestic destinations have collectively pressured financial performance.

Fuel pricing represents the most significant uncertainty. Diplomatic efforts between Washington and Tehran to resolve ongoing disputes remain inconclusive.

Additional cruise line equities declined Monday as well. Norwegian Cruise Line (NCLH) and Viking Holdings (VIK) each retreated approximately 1.5%.

Several other analysts have adopted increasingly favorable positions on Royal Caribbean in recent weeks. JPMorgan increased its price target to $394 while maintaining an Overweight designation, pointing to favorable yield trends.

Bernstein SocGen confirmed an Outperform rating accompanied by a $355 target. UBS preserved its Buy rating and $367 objective following encouraging preliminary figures from TUI Cruises, Royal Caribbean’s joint venture collaborator.

TUI disclosed a 12% expansion in capacity alongside a 2% improvement in daily rates for the September quarter. Goldman Sachs similarly reaffirmed its Buy stance with a $360 price target on Royal Caribbean.