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Research Alert: CFRA Lowers Opinion On Shares Of Royal Caribbean Group To Buy From Strong Buy
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Research Alert: CFRA Lowers Opinion On Shares Of Royal Caribbean Group To Buy From Strong Buy
Jul 1, 2025 11:13 AM

01:45 PM EDT, 07/01/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month price target by $55 to $357, based on a 15x 2026 EV/EBITDA multiple (from 15x 2025 EV/EBITDA), at the top end of its 9x-15x three-year trading range and a premium to competitors based on recent operational execution and best-in-class hardware. We raise our 2025 EPS estimate to $15.55 from $14.90 and raise our 2026 EPS estimate to $18.54 from $17.32. Stronger-than-expected May-Q results from Carnival Corp (CCL 29 ****) give us more confidence that close-in bookings remain strong for RCL's comparable fleet in 2025. Our 2025 EPS estimates are at the top end of guidance, which appears conservative, in our view. However, we lower our opinion to Buy from Strong Buy, as strong execution is more priced into the stock than it was in April. Still, we think two new hardware launches and the opening of Royal Beach Club Nassau are demand generators at structurally higher margins and could propel RCL toward a $20B revenue milestone in 2026.

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