Royal Caribbean Cruises Ltd. (RCL)

Executive Summary

This report updates T&T Capital Management’s May 2026 research on Royal Caribbean. When we last wrote, the stock sat at $275.24, roughly 25% below its February high, knocked down by a fuel shock, geopolitical disruption to Mediterranean and West Coast of Mexico itineraries, and a guidance trim. We rated the shares ADD and flagged BUY below $260. We did not get our BUY print — instead the market did its homework. Since then RCL has rallied roughly 14% to $312.51, the company reported a clean first-quarter beat (adjusted EPS of $3.60 against guidance), reaffirmed full-year 2026 adjusted EPS of $17.10-$17.50 (about 11% growth), and disclosed that bookings, which had wobbled in March, have recovered to a higher pace than the prior year.

What’s Inside The Full Report

• 15-year financial summary table — revenue, net income, GAAP & adjusted EPS
• Valuation framework — current multiples vs. 5-year historical range
• Peer comparison table — multiples, margins, balance-sheet metrics
• Base case, bull case, bear case price targets with explicit math
• Competitive position and economic moat analysis
• Management and capital allocation track record
• Balance sheet review — leverage, credit ratings, distribution coverage
• Insider activity — recent open-market buys / sells with interpretation
• Strategic acquisitions and divestitures history
• Sell-side consensus and where TTCM differs
• Detailed risk factors specific to the name
• Bull case and forward catalysts to watch
• TTCM rating with explicit ADD / TRIM price triggers