Jefferies analyst David Katz has maintained their neutral stance on RCL stock, giving a Hold rating today.
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David Katz has given his Hold rating due to a combination of factors impacting Royal Caribbean’s financial outlook. Despite a modest beat in the third quarter and an increased guidance for fiscal year 2025, the company’s projections for fiscal year 2026 earnings per share are lower than anticipated. This discrepancy is attributed to challenging comparisons and is expected to result in a moderately negative reaction in the stock market.
Additionally, while the company maintains a solid liquidity position, with significant revolving capacity, the increase in interest expenses due to new debt issuance raises concerns. The anticipated performance during the critical WAVE season and management’s insights into future growth drivers will be crucial in shaping expectations. Overall, these mixed signals contribute to the Hold rating, reflecting caution amid uncertainties in the company’s future performance.
According to TipRanks, Katz is a 4-star analyst with an average return of 6.4% and a 43.90% success rate. Katz covers the Consumer Cyclical sector, focusing on stocks such as DraftKings, Rush Street Interactive, and Gambling.com.
In another report released today, Morgan Stanley also maintained a Hold rating on the stock with a $300.00 price target.