First Read: Royal Caribbean "Will Addressing All Concerns be Enough?" (Buy)

Research evidence excerpt

First Read: Royal Caribbean "Will Addressing All Concerns be Enough?" (Buy)

Global Research

20 May 2026ab

First Read

EquitiesRoyal Caribbean

Will Addressing All Concerns be Enough? United States

Recreational Products & Services

12-month rating Buy

RCL received news yesterday that SEMARNAT, which is Mexico’s federal environment

ministry, would not approve the company’s application for its Perfect Day Mexico private 12m price target US$309.00

destination. As a reminder, RCL has been working extensively over the last year to

address environmental concerns and has been taking extensive feedback from

Price (20 May 2026) US$253.50SEMARNAT, including adding wastewater treatment plants, solid waste treatment

plants, and reverse-osmosis capabilities to create purified water, and other plans for RIC: RCL.N BBG: RCL US

what RCL describes as state-of-the-art environmental protections. We would expect RCL

Trading data and key metrics

to resubmit their proposal with all concerns now addressed in a unified and updated

application. 52-wk range US$365.84-237.75

Market cap. US$68.4b

Shares o/s 270m (COM)

RCL has been doing clearing and demolition work at the site that it bought in Sept 2024

Free float 56%

for close to $300M and has been going through the environmental process since last

year. Even before today, the opening of Perfect Day Mexico had gently slid from 2027 to Avg. daily volume ('000) 615

“soft opening” in Q4'27 with a full ramp in 2028. Today’s news would at the very least Avg. daily value (m) US$170.3

suggest that timing would be further impacted, and the bigger question is whether Common s/h equity (12/26E) US$11.4b

Mexico would be willing to approve a proposal that takes into account all the feedback P/BV (12/26E) 5.8x

that SEMARNAT has given RCL over the last year.