Jefferies Upgrades Royal Caribbean on $3B Sandals Stake, Cites Upside Potential

Jefferies upgraded Royal Caribbean Cruises to a buy rating, raising its 12‑month price target to $330 from $305 after the cruise line agreed to acquire a 50 % stake in Sandals Resorts International for about $3 billion. Analyst David Katz noted that the firm’s earlier caution was overly conservative and that the Sandals investment should improve fiscal‑year‑2027 net yields to roughly +3.3 % versus the prior +2.9 % forecast, delivering meaningful upside. Although the stock slipped 2 % on the announcement day and has been flat year‑to‑date in 2026, Katz expects earnings estimates to rise as the deal drives stronger performance than current valuations suggest. At under 13.0× projected NTM EV/EBITDA, the upside could exceed headline multiples. Jefferies’ view aligns with the broader consensus, where 24 of 30 analysts rate Royal Caribbean a buy or strong buy and six maintain a hold, according to LSEG data.

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