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Skip NavigationMarketsBusinessInvestingTechPolitics & PolicyVideoWatchlistInvesting ClubPROLivestreamMenuRoyal Caribbean Cruises will likely get a boost from its $3 billion, 50% stake in Sandals Resorts International, according to Jefferies. The investment bank raised its rating on the cruise line operator to buy from hold and hiked its 12-month price target on the stock to to $330 from $305, implying nearly 17% upside from Wednesday’s close. “Our investment framework on RCL over the past 18 months ultimately proved too conservative,” Jefferies analyst David Katz wrote Thursday in a report. “While our caution was later warranted given slowing comps and the Iran conflict, we now see an increasingly attractive setup.” “Our view is driven by a more favorable [fiscal year 2027] net yield setup (+3.3% vs. +2.9% prior) and high- conviction growth in Sandals,” he said. Royal Caribbean fell 2% Tuesday after announcing the Sandals deal. The stock is little changed in 2026. RCL YTD mountain Shares or Royal Caribbean are roughly trading flat in 2026. But Katz noted that earnings estimates for Royal Caribbean could move higher following the Sandals tie-up, which should drive more upside than Wall Street expects to the stock. “At < 13.0x current [next twelve months enterprise value-to-EBITDA], we expect the estimates to move higher on Sandals, which implies greater upside than headline valuations reflect,” Katz wrote. Jefferies’ call matches the consensus on Wall Street, where 24 of 30 analysts rate Royal Caribbean a buy or strong buy, while six give it a hold, LSEG data shows.Read More