Truist on Royal Caribbean Cruises (RCL): 'The Stock Will Struggle Today'

Truist Securities analyst C. Patrick Scholes reiterated a Hold rating and $337.00 price target on Royal Caribbean Cruises (NYSE: RCL).

The analyst commented: "Decent but not Amazing as 2Q ahead but 3Q and (implied) 4Q light; While 2Q earnings came-in ahead of consensus expectations, mainly driven by better than expected costs as revenues were slightly light and from upside from earnings from the TUI brand, we believe investors will be most focused on the 3Q EPS guide below Steet estimates. 2Q EPS beat the mid-point of guidance by $0.33 and consensus by $0.29 though implied 2H25 EPS of $8.39 is below consensus of $8.65 (and full-year EPS will benefit from an additional $0.07/share from lower than previously expected Depreciation and Net Interest Expenses). For the 2Q earnings outperformance, we do not see the sizable beat as too much of a surprise at this point as RCL has a strong track record over the past several quarters of sizable quarterly beats. That said, we believe the stock will struggle today as the midpoint of 3Q EPS guidance of $5.60 is below consensus of $5.83 and 3Q Net Yield guide of +2.3-2.8% is below the Street at +3.5%, this miss in light of a stock that has seen significant outperformance YTD (and in 2023 and 2024)."

For an analyst ratings summary and ratings history on Royal Caribbean Cruises click here. For more ratings news on Royal Caribbean Cruises click here.

Shares of Royal Caribbean Cruises closed at $334.37 yesterday.

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