Wall Street analysts came away from Royal Caribbean Group’s third quarter results bullish on the company’s outlook, with several suggesting management’s 2027 earnings target may prove conservative.

Royal Caribbean reiterated that it expects 2027 adjusted earnings per share with a $20 handle, the final year of its Perfecta program.

David Katz of Jefferies said that figure looked conservative given 2027 bookings pacing up in the high teens over the past 90 days, heavy fuel costs and no contribution included from the company’s planned Sandals and Beaches Resorts investment.

Jefferies set its 2027 estimate at $20.90 per share, and raised its price target to $350 from $330 while reiterating a buy rating. Katz said business momentum and future growth from Sandals, additional land-based assets and new ship capacity all supported 2028 and beyond, as well as the company’s premium valuation compared to peers.

Katz also noted that onboard spending remained robust, driven by greater technology adoption along with continued strength in gaming and beverage.

Sharon Zackfia of William Blair reiterated an outperform rating, calling Royal Caribbean the best-in-class cruise operator. She noted the company was still poised to grow earnings by about 15 percent this year and meet its original January guidance, despite full-year fuel expenses running 15 percent higher than initially forecast.

William Blair raised its 2027 earnings estimate to $20.48 from $20.04 and forecast $23.39 for 2028.

Xian Siew of BNP Paribas said he viewed the results positively and maintained a $392 price target. Over the last couple of quarters, he explained, some investors had worried Royal Caribbean could not deliver the fourth quarter yield acceleration implied by guidance.

He also noted Royal Caribbean tends to beat its guidance and had checked the box on 2027 by reiterating its Perfecta targets.