-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target by $97 to $290, based on a 13x 2026 EV/EBITDA multiple (from 16x), a discount to shares' 15x three-year average forward average multiple, reflecting risks to earnings growth stemming from elevated fuel costs. We lower our 2026 EPS estimate to $17.42 from $18.18 and 2027's to $19.92 from $20.40. Following Q1 results, we are downgrading our opinion to Hold from Buy. Our revised opinion reflects our view on elevated fuel costs, which are expected to increase 2026 fuel expenses by $200M compared to RCL's prior guidance in February. Furthermore, geopolitical disruptions moderated booking demand for high-yield Mediterranean and West Coast Mexico itineraries, suggesting potential for net yield growth to disappoint in Q2 and Q3. Although shares are already trading below their three-year averages, we think the setup is for earnings upside has become less favorable. This is balanced by still strong demand trends and ongoing net yield growth in Q1, suggesting demand remains resilient.