Jefferies upgrades Royal Caribbean to Buy following $3 billion investment in Sandals Resorts
Royal Caribbean Cruises is expected to benefit from its recent $3 billion acquisition of a 50% stake in Sandals Resorts International, according to Jefferies. The firm raised its rating on the stock to 'Buy' from 'Hold,' with an updated price target of $330 per share—up from $305—which suggests nearly 17% upside potential based on recent closing prices. Jefferies analyst David Katz cited a more favorable fiscal year 2027 net yield setup and strong growth expectations for Sandals as key drivers behind the upgrade. Although Royal Caribbean's stock initially dipped after announcing the deal, analysts believe earnings estimates could rise due to this strategic move, potentially outperforming Wall Street forecasts. The positive outlook aligns with broader market sentiment; 24 of 30 analysts currently rate RCL a 'Buy' or 'Strong Buy,' according to LSEG data. The investment is seen as a catalyst for long-term value creation and improved investor confidence in the cruise operator's future performance.
Tickers: $RCL
Topics: Buy Recommendation Jefferies Royal Caribbean Cruises Sandals Resorts International Stock Price Target