Deutsche Bank raises Royal Caribbean to Buy with $299 target

Deutsche Bank upgraded Royal Caribbean to Buy from Hold on September 28, 2026. Analyst Chris Woronka maintained a price target of $299 per share, which implies a 23% upside compared to the September 25 closing price of $242.70.

The upgrade follows a 26% decline in Royal Caribbean shares since August 5, during a period when the S&P 500 remained flat. Woronka attributed the drop to higher oil prices and worries regarding the sustainability of cruise pricing growth. Norwegian Cruise Line has sought to fill 2027 cabins early, while Caribbean industry capacity is scheduled to expand by double digits in the fourth quarter.

Fuel expenses have climbed following the outbreak of conflict in the Middle East, yet Woronka noted that fuel represents only about 7% of Royal Caribbean's revenue at current price levels. He described the recent valuation drop as overly punitive relative to the cruise line's underlying growth profile excluding fuel.

Royal Caribbean also announced an investment of $3 billion in a joint venture set to hold a 50% interest in Sandals Resorts. Although market sentiment was initially skeptical, Deutsche Bank viewed the transaction positively. The bank also noted that peer Carnival will report fiscal third-quarter earnings on September 29, 2026, and a positive market reaction there could provide additional support to Royal Caribbean shares.