Movement Alert|Royal Caribbean Cruises Rises 3.26% in Pre-Market Trading, BofA and Deutsche Bank Both Upgrade to Buy

Market Focus
Sep 29

On September 29, Royal Caribbean Cruises rose 3.26% in pre-market trading, trading at approximately $251.96 per share, with turnover of $3.18 million.

On the news front, both BofA Securities and Deutsche Bank simultaneously upgraded Royal Caribbean Cruises to a Buy rating, catalyzing the rebound. BofA analyst Andrew Didora raised the stock from Neutral to Buy with a $330 target price, while Deutsche Bank also upgraded to Buy with a $299 target. The upgrades come after the stock had fallen approximately 26% since August 5, with BofA arguing the selloff represents an excessive pullback.

The bullish stance centers on Royal Caribbean Cruises' recently announced $3 billion acquisition of a 50% stake in all-inclusive resort operator Sandals Resorts, valuing the business at $6 billion. BofA estimates the deal could initially add 3% to 4% to EBITDA, with potential to grow Sandals' EBITDA from $600 million to approximately $900 million by 2030 through pricing, supply chain, and loyalty program synergies. While the stock initially fell on the deal announcement, analysts now view the pullback as a compelling entry point. The transaction is expected to close in early 2027.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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