Prediction: Royal Caribbean Still Has Room to Run Despite Rally

Our Royal Caribbean Cruises (NYSE:RCL) telephone sits firmly successful the bull camp. Our 24/7 Wall St. terms people for Royal Caribbean is $319, pointing to 24.56% upside from the caller adjacent of $256.10. The exemplary carries a 90% assurance score. The proposal is buy.

A Choppy Stock Hiding a Strong Operating Story

RCL has frustrated shareholders contempt fantabulous fundamentals. The banal is down 7.69% twelvemonth to day and 3.59% implicit the past month, hitting a 52-week debased of $232.48 connected May 20. The banal sits 6% beneath its 52-week precocious of $362.21. The five-year instrumentality is 216.4%.

Q1 2026, reported April 30, delivered adjusted EPS of $3.60 against $3.20 consensus, a 12.59% bushed and 4th consecutive 4th topping estimates. Revenue grew 11.33% YoY to $4.452 billion, narrowly missing expectations.

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Net income jumped 28.9% to $941 million, and adjusted EBITDA borderline expanded 310 bps to 38.2%. The caller selloff tracked headlines astir Mexico's intent to contradict the Perfect Day Mexico biology licence and elevated substance costs, portion operating show held firm.

The Case for $377+

Bulls person a cleanable story. CEO Jason Liberty told investors Q1 reflected a "record WAVE season" and guided FY2026 adjusted EPS to $17.10 to $17.50, implying double-digit net growth. The Perfecta Program targets 20% adjusted EPS CAGR done 2027, with absorption hitting the high-teens ROIC milestone early.

Growth drivers see Legend of the Seas delivery, Royal Beach Club Santorini launch, Icon VI and VII orders, Celebrity River Cruises entering work successful 2027, and the caller Royal ONE recognition card. Royal Caribbean repurchased 2.9 cardinal shares for $836 cardinal successful Q1 alone, with $1 cardinal remaining. The Street's $340.46 statement and our bull lawsuit script of $377.05 bespeak that compounding setup.