Royal Caribbean Stock Rises To One Month-High Ahead Of Earnings: Retail’s Optimistic

synopsis

Shares of Royal Caribbean Group ($RCL) have increased 7% in the past five days reaching a one month-high on Tuesday, ahead of the cruise liner’s fourth-quarter earnings, with retail sentiment inching up.

For its fourth quarter earnings, Wall Street analysts expect Royal Caribbean to post earnings per share of $1.49 on revenue of $3.76 billion, according to Stocktwits data. The cruise operator has beaten estimates four times in all past four quarters.

On Friday, JPMorgan raised Royal Caribbean's price target to $295 from $253 with an ‘Overweight’ rating, Fly.com reported. The firm's recent fieldwork points to cruise demand remaining robust, with Royal management focused on "optimizing" its booking curve for 2025, added the report.

Last week, Morgan Stanley raised the firm's price target to $210 from $190 with an 'Equal Weight' rating on the shares, reflecting Royal Caribbean's stronger growth profile, margins and balance sheet compared to its past record, Fly.com said.

Sentiment on Stocktwits turned 'bullish' from ‘neutral’ territory a week ago. Message volumes remained in the ‘high’ zone.

RCL sentiment meter and message volumes on Jan 22 as of 4:35 am ET

Royal Caribbean Cruises posted strong earnings in the third-quarter with revenue increasing 17.4% year-over-year to $4.9 billion. 

Separately, Royal Caribbean on Tuesday signed an agreement with Chantiers de l'Atlantique, ordering a sixth Edge Series ship for its Celebrity Cruises brand targeted for delivery in 2028. Royal Caribbean Group's newbuild pipeline currently includes a total of eight ships on order.

Miami-based Royal Caribbean's global cruise brands include Royal Caribbean International, Celebrity Cruises, and Silversea Cruises. The firm also holds interest in TUI Cruises GmbH, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises.

Royal Caribbean stock is up 5.4% year-to-date.

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