Royal Caribbean (RCL) Target Raised to $425 on Earnings Momentum
We recently published an article titled 10 Best Cruise Stocks to Buy Right Now.
On February 6, Tigress Financial raised its price target on Royal Caribbean Cruises Ltd. (NYSE:RCL) to $425 from $415 while reiterating a Buy rating. The firm highlighted that Royal Caribbean’s 2025 performance reflects a multi-year growth trajectory characterized by record revenue, earnings, and cash flow generation. Margin expansion has been supported by destination-focused assets and the implementation of AI-driven pricing and operational efficiencies. Entering 2026 with strong forward bookings, new high-return ships and destinations, expanding river cruise exposure, and increasing high-margin onboard revenue, Tigress sees continued momentum in earnings and capital returns.
For 2026, management guided double-digit revenue growth, with net yield growth of 1.5%–3.5% and capacity expansion of 6.7%. Adjusted EPS is projected between $17.70 and $18.10, representing approximately 14% year-over-year growth at the midpoint, while adjusted EBITDA is expected to approach $8.0 billion with margins just above 40%. Operating cash flow is forecast to exceed $7.0 billion. In 2025, total revenue neared $18 billion, rising 8.8% year-over-year, while adjusted EPS increased 33% to $15.64.
Royal Caribbean Cruises Ltd. (NYSE:RCL) returned $2.0 billion to shareholders through dividends and repurchases and ended the quarter with $7.2 billion in liquidity and leverage below 3x, achieving investment-grade metrics. This combination of earnings acceleration, balance sheet strength, and disciplined capital returns supports a compelling long-term investment case.
Founded in 1985 and headquartered in Miami, Florida, Royal Caribbean Cruises Ltd. (NYSE:RCL) is among the best cruise stocks to buy right now. Through its portfolio of global cruise brands, the company offers diversified itineraries and innovative vessels.
While we acknowledge the potential of RCL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 8 Up and Coming Streaming Companies and Services and 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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