Royal Caribbean: Positioned for Growth Amid Market Overreaction and Attractive Valuation

Steven Wieczynski, an analyst from Stifel Nicolaus, maintained the Buy rating on Royal Caribbean. The associated price target remains the same with $400.00.

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Steven Wieczynski has given his Buy rating due to a combination of factors that suggest Royal Caribbean is well-positioned for future growth. Despite concerns about Caribbean capacity and pricing, Wieczynski believes that the company’s offerings and destinations will outperform the industry, particularly with the new-to-cruise cohort driving demand. He anticipates positive yield growth for Royal Caribbean in 2026, with initial guidance expected to show moderate growth, which is a positive indicator for the company’s financial health.
Furthermore, Wieczynski points out that the market has overreacted to fears about the cruise industry’s future, resulting in a significant drop in Royal Caribbean’s market capitalization. He argues that this decline is excessive, given the current booking trends and the company’s strategic positioning. Wieczynski sees the recent sell-off as an opportunity for investors to buy into a company with strong management and potential for robust earnings growth through 2028. He also highlights that the company’s conservative initial EPS guidance for 2026 could lead to upside surprises, making Royal Caribbean an attractive investment at its current valuation.