Mizuho has raised its price target for Royal Caribbean Cruises Ltd. (NYSE:RCL) to $380 from $377, maintaining an Outperform rating on the stock.
The adjustment follows the cruise operator's first-quarter 2026 financial results released on April 30.
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Strong Q1 Performance
Royal Caribbean reported $4.5 billion in revenue for the first quarter, an 11% increase year-over-year.
The company also posted a GAAP EPS of $3.48, surpassing management's initial guidance.
Management attributed the strong results to favorable revenue streams, lower operational costs, and solid performance from joint ventures.
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The quarter also saw a record WAVE season and sustained demand across its brands, including Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.
Gross margin yields grew by 6.9% as-reported, according to financial data.
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Future Outlook
Looking ahead, Royal Caribbean projects revenue to increase by approximately 10% year-over-year.
Net yields are expected to rise between 2.3% and 3.3% in constant currency.
The company noted that recent geopolitical developments have impacted its Mediterranean and West Coast of Mexico itineraries.
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These itinerary adjustments are the primary reason for the slower expected growth rate in net yields.
