Analyst Andrew Didora of Bank of America Securities reiterated a Hold rating on Royal Caribbean, reducing the price target to $325.00.
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Andrew Didora has given his Hold rating due to a combination of factors influencing Royal Caribbean’s financial outlook. The company reported a third-quarter earnings per share (EPS) that exceeded expectations, driven by better-than-anticipated cost management. However, the guidance for the fourth quarter fell short of market expectations, with net yield projections not meeting the anticipated levels.
Despite a promising earnings algorithm for 2026, which suggests a favorable spread between net yield and cost growth, external factors such as increased taxes and fuel costs are expected to offset potential gains. Consequently, the earnings per share for 2026 is projected to be slightly lower than market consensus. These mixed signals, along with a revised price objective reflecting slower EBITDA growth, underpin the decision to maintain a Neutral rating.
According to TipRanks, Didora is a 3-star analyst with an average return of 2.1% and a 53.94% success rate. Didora covers the Industrials sector, focusing on stocks such as Alaska Air, JetBlue Airways, and Delta Air Lines.
In another report released yesterday, Jefferies also maintained a Hold rating on the stock with a $317.00 price target.