Royal Caribbean Cruises Ltd. (RCL)

In the bull case, premium destination attach rates (CocoCay and Royal Beach Club expansions) and superior booking momentum drive net yield growth above 3.5%, expanding FY2026 revenue growth toward 11.5% and FY2027 revenue above $21,800M. Unit cost control holds net cruise costs excluding fuel flat to down, driving operating margins above 29.5% and diluted EPS beyond $21.50 in FY2027. Accelerated free cash flow generation enables rapid debt paydown toward net debt of under $18,000M, reducing interest expense and prompting multiple expansion from 11.4x forward P/E toward peer hospitality averages.

• Net yield growth expands above 3.5% across core itineraries.
• Operating margin expands above 29.5% through unit cost discipline.
• Accelerated debt paydown reduces net debt below $18,000M from $21,695M.