RCL Stock In Focus — Wall Street Turns Bullish On Cruise Line Operator As Travel Demand Stays Strong

Bank of America and Deutsche Bank both upgraded Royal Caribbean to ‘Buy,’ citing resilient travel demand and a more attractive risk-reward after the stock’s sharp pullback in August.

• BoFA upgraded Royal Caribbean to ‘Buy,’ saying the recent selloff looks overdone.
• Deutsche Bank also upgraded the stock, pointing to a more attractive entry point after the recent pullback.
• Bank of America sees the Sandals deal as another potential growth driver for the cruise operator.

Royal Caribbean Group (RCL) is getting a boost from Wall Street after a sharp pullback, with Bank of America and Deutsche Bank both upgrading the cruise operator to ‘Buy.’ The firms pointed to strong travel demand, the company’s yield-growth outlook, and its partnership with Sandals.

RCL shares gained more than 2.5% Monday afternoon.

Bank Of America Turns Bullish

Bank of America upgraded Royal Caribbean to ‘Buy’ from ‘Neutral’ while maintaining its $330 price target. The target implies nearly 36% upside from Friday’s close.

Higher oil prices have weighed on Royal Caribbean’s stock this year, raising concerns about the impact on the company’s balance sheet and whether consumers could cut back on leisure spending. But Bank of America said travel demand has remained strong, reported CNBC.

“Travel spend has grown mid- to high-single digits since February and cruise spend reaccelerated to mid-teens growth in July and August,” the firm wrote in a note on Monday.

It also pointed to recent comments from Royal Caribbean, which indicated steady demand. That gave Bank of America confidence in at least 4% net yield growth in the fourth quarter of 2026, which the firm said would be the strongest in the industry.

“Further, commentary from RCL at our recent conference spoke of steady demand and gave us comfort in at least 4% net yield growth in 4Q26 (strongest in industry) with the ability to guide to its historical net yield algorithm of +2-3% in 2027,” the firm wrote, reported CNBC,

Sandals Deal Adds To Growth Case

Royal Caribbean shares remain 26% below their Aug. 5 closing peak. The stock also declined for a seventh straight week last week after the company announced plans to take a 50% equity stake in Caribbean resort chain Sandals.

Bank of America sees the Sandals partnership as another potential growth driver. It said Sandals could generate stronger growth with Royal Caribbean’s expertise, potentially increasing the cruise operator’s earnings before interest, taxes, depreciation, and amortization (EBITDA) by the low- to mid-teens, according to BoFA’s estimate.

Deutsche Bank Also Upgrades Stock

Deutsche Bank also upgraded Royal Caribbean to ‘Buy’ from Hold, while keeping its $299 price target. The target implies around 23% upside from Friday’s close.

The bank said the stock’s pullback has created a considerably more favorable risk-reward profile. Deutsche attributed the selloff to higher oil prices and concerns about the durability of Royal Caribbean’s yield growth, according to TheFly.

Deutsche also expressed support for the company’s joint venture with Sandals, saying the deal makes sense 

RCL Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for RCL remained ‘extremely bullish,’ unchanged in the last 24 hours, while message volume was ‘extremely high.’

RCL stock has lost around 13% year-to-date.

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