Should You Buy Royal Caribbean Cruises Ltd (RCL) Today? Analysis, Price Targets, and 2026 Outlook.
Conclusion
Buy
Latest Price
345.980
1 Day change
18.65%
52 Week Range
366.500
Analysis Updated At
2026/01/26
Royal Caribbean Cruises Ltd (RCL) is a good buy for a beginner investor with a long-term focus and $50,000-$100,000 available for investment. The company demonstrates strong financial growth, positive sentiment from Congress trading, and favorable long-term prospects despite short-term technical weakness. The upcoming earnings report and strong Q3 performance further support this recommendation.
Technical Analysis
The technical indicators show a bearish trend with the MACD below zero and negatively contracting, RSI in the neutral zone at 53.388, and bearish moving averages (SMA_200 > SMA_20 > SMA_5). The stock is trading near its pivot level of 287.471, with key support at 269.17 and resistance at 305.773. This indicates short-term weakness but no significant breakdown.
Options Data
Bearish
Open Interest Put-Call Ratio
Bullish
Option Volume Put-Call Ratio
Technical Summary
Sell
3
Buy
11
Positive Catalysts
Strong Q3 financial performance with revenue up 5.18% YoY, net income up 41.76% YoY, and EPS up 36.58% YoY.
Congress trading data shows heavy buying with 4 purchase transactions and no sales.
Analysts have raised price targets recently, with Goldman Sachs increasing it to $310 and Mizuho to $
Positive news sentiment, including a 51% profit growth in Q3 2025 and a 62% annualized return over three years.
Neutral/Negative Catalysts
Hedge funds are selling, with a 107.38% increase in selling activity last quarter.
Analysts note concerns about supply outpacing demand in the cruise market, leading to reliance on promotions.
Short-term technical weakness with bearish moving averages and a negative MACD.
Financial Performance
In Q3 2025, Royal Caribbean reported revenue of $5.139 billion (up 5.18% YoY), net income of $1.575 billion (up 41.76% YoY), and EPS of $5.75 (up 36.58% YoY). Gross margin increased to 43.28%, reflecting strong operational efficiency. The company also reduced its debt to $21 billion, showcasing effective debt management.
Growth
Profitability
Efficiency
Analyst Ratings and Price Target Trends
Analysts have mixed views but lean positive overall. Goldman Sachs raised the price target to $310 and maintains a Buy rating, while Mizuho increased the target to $381 with an Outperform rating. However, some analysts, like Truist and Stifel, lowered price targets, citing concerns about supply-demand dynamics and potential underwhelming initial guidance for 2026.
Wall Street analysts forecast RCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RCL is 327.8 USD with a low forecast of 275 USD and a high forecast of 400 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
16 Analyst Rating
Wall Street analysts forecast RCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RCL is 327.8 USD with a low forecast of 275 USD and a high forecast of 400 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 291.600
Low
275
Averages
327.8
High
400
Current: 291.600
Low
275
Averages
327.8
High
400
Goldman Sachs
Buy
maintain
$275 -> $310
AI Analysis
2026-01-23
Reason
Goldman Sachs
Price Target
$275 -> $310
AI Analysis
2026-01-23
maintain
Buy
Reason
Goldman Sachs raised the firm's price target on Royal Caribbean to $310 from $275 and keeps a Buy rating on the shares. Cruise sentiment has been mixed, with December strength giving way to renewed competitive concerns from Wave Season promotions, shifting focus to the pace and drivers of net yield acceleration from Q2 into the second half, the analyst tells investors in a research note. For Royal Caribbean, initial 2026 guidance is expected to call for 1.5%-3.5% net yield growth and EPS of at least $17.50, with attention centered on a second half ramp driven by new ships, private destinations, and easier comps, alongside potential upside from strong cost control, the firm says.
Mizuho
Outperform
maintain
$378 -> $381
2026-01-22
Reason
Mizuho
Price Target
$378 -> $381
2026-01-22
maintain
Outperform
Reason
Mizuho raised the firm's price target on Royal Caribbean to $381 from $378 and keeps an Outperform rating on the shares. The firm sees currency and fuel costs being tailwinds for the company in Q4. It updated Royal's model ahead of the earnings report.
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