Royal Caribbean's (NYSE:RCL) price target was raised to $120 from $100 at Stifel on Friday, with analysts reiterating a Buy rating on the stock.
Stifel recently hosted RCL's management team, including CEO Jason Liberty, for a series of in-person investor meetings. Analysts stated that bookings continue to strengthen, and they still see ample upside to RCL shares.
"Post our time with management, we feel comfortable enough to raise our 2023-2025 estimates based on continued strength in booking/ pricing patterns," wrote analysts.
"We sense bookings/demand have remained incredibly strong not only for the remainder of 2023, but also for 2024," they added. "We fully understand there is a fear around the consumer softening, but given the fact cruise demand was sheltered during COVID more so versus other vacation alternatives, we believe there is at least a two-to-three year pent-up backlog in demand."
Analysts believe cruise demand and bookings should continue to be healthy even if the consumer does somewhat weaken.
"With RCL's Trifecta goals now looking more realistic/conservative, we believe shares should eventually end up well in triple-digit territory," they concluded.