Buy Rating Affirmed for Royal Caribbean with Target Price Increase Amidst Strong Performance and Strategic Growth

Macquarie analyst Paul Golding has maintained their bullish stance on RCL stock, giving a Buy rating on April 19.

Paul Golding has given his Buy rating due to a combination of factors including Royal Caribbean’s (RCL) performance surpassing guidance and market expectations in their recent quarterly report. Strong demand and pricing have driven revenue and adjusted earnings per share (EPS) beyond what was anticipated. Additionally, RCL’s updated fiscal year 2024 guidance indicates further earnings growth, with an 8% increase in the midpoint forecast attributed to the first quarter’s outperformance, reduced financing costs, and record bookings and pricing during the WAVE season. This has led to an upward adjustment of the target price from $160 to $165.
Furthermore, the cruise operator’s ability to capitalize on growth through innovative ship formats and a compelling value proposition is also contributing to the positive outlook. RCL’s strategic focus on product and demand is not only enhancing its market position but also enabling substantial debt paydown, which is particularly significant given the current uncertain macroeconomic environment. With the continued de-leveraging of their balance sheet and the achievement of their ‘Trifecta’ financial goals one year earlier than initially projected, Royal Caribbean is well-positioned for future growth, meriting the Buy rating.

Golding covers the Consumer Cyclical sector, focusing on stocks such as Royal Caribbean, Carnival, and Planet Fitness. According to TipRanks, Golding has an average return of 2.4% and a 51.16% success rate on recommended stocks.

In another report released on April 19, Citi also maintained a Buy rating on the stock with a $157.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Royal Caribbean (RCL) Company Description:

Royal Caribbean Cruises Ltd. operates as a global cruise vacation company. It operates global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. The firm also holds interest in TUI Cruises, Pullmantur and SkySea Cruises brands. The company was founded in 1968 and is headquartered in Miami, FL.