MW Can Royal Caribbean's stock keep rising? Here's what Wall Street's new top bull says.
By Tomi Kilgore
The most asked question of Stifel analyst Steven Wieczynski is how much higher the cruise operator's stock can go. His answer? 'A lot.'
Shares of Royal Caribbean Group were hovering just below record levels on Wednesday, after the new most bullish analyst on Wall Street said they still have a lot further to rally.
Stifel analyst Steven Wieczynski said there was a lot of skepticism back in December when he said that Royal Caribbean's stock $(RCL)$, which at the time was trading around $225, was worth more than $300 a share.
The stock is now trading north of $330 - it closed at a record $334.48 on July 3 - and Wieczynski said people are now asking him how much higher it could go.
"In fact, the number one fielded question we have had over the past two weeks is 'how much is left in [Royal Caribbean's stock] and cruise industry?" Wieczynski wrote in a note to clients. "Well, we think there is a lot of upside left in [the stock] and continue to believe this name should remain a core holding for any investor."
He responded by raising his price target on the stock to $400 from $310, with the new target implying about 21% upside from current levels.
That target now makes Wieczynski the most bullish of the 27 analysts surveyed by FactSet who cover Royal Caribbean's stock, as it is higher than the previous Street-high target of $378 from an unnamed analyst.
"Best in class assets, best in class management team, low supply growth, investment grade balance sheet, and you couple all those traits with healthy demand/pricing prospects, we just don't see a reason this name can't continue to work," Wieczynski wrote.
The stock has defied skeptics by soaring 58.2% over the past three months to outpace the S&P 500 index's SPX 14.6% rally over the same period, despite widespread concerns over consumer spending and a slowing economy, and as airlines have seen travel demand decline.
But cruise operators have continued to say demand for future cruises remains robust, and passengers are still spending on the ships. The reason, they say, is that people are prioritizing experiences over things, and cruises are still a lot cheaper than comparable land-based vacations.
Read: Royal Caribbean CEO explains why cruises are so popular
Among others in the cruise business, Carnival Corp. shares $(CCL.UK)$ have climbed 46.8% over the past three months, Viking Holdings Ltd. shares (VIK) have surged 34.5% and Norwegian Cruise Line Holdings Ltd.'s stock (NCLH) has run up 19%.
"Based on our channel checks and conversations with the agent community, it's very clear demand for cruising has not slowed down at all," Wieczynski wrote.
Royal Caribbean will be the first of the group to report second-quarter results, due out on July 29. The company has beat profit expectations for the past 12 quarters.
-Tomi Kilgore
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July 09, 2025 15:52 ET (19:52 GMT)
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