Goldman Sachs analyst Lizzie Dove reiterated a Buy rating on the shares of Royal Caribbean Cruises Ltd (NYSE:RCL) with a price forecast of $305.00.
In its recent investor day, the management has set a target of a 20% compound annual growth rate (CAGR) in earnings per share through 2027, forecasting $20.50 compared to the consensus estimate of $19.90.
Looking ahead, Royal Caribbean anticipates 1-1.5 percentage points of like-for-like yield growth, plus another 1-1.5 percentage points from new ships, which could rise in favorable market conditions, along with gains from investments in private islands.
Crucially, Royal Caribbean isn’t noticing any shifts in consumer behavior, and strong trends are visible from real-time spending data on the ships, supported by the value gap compared to land-based vacations, noted the analyst.
In addition to the broader industry tailwinds benefiting the cruise sector, management highlighted several …
