Analyst Richard Clarke from Bernstein maintained a Buy rating on Royal Caribbean and keeping the price target at $360.00.
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Richard Clarke has given his Buy rating due to a combination of factors that highlight Royal Caribbean’s strategic positioning and growth potential. The company has secured a long-term agreement with Meyer Turku, ensuring a steady supply of new ships, including the innovative Icon Class vessels, through to 2036. This agreement not only solidifies Royal Caribbean’s future capacity but also underscores its commitment to staying ahead of competitors in terms of ship innovation.
Furthermore, the cruise industry is experiencing a favorable outlook with demand outpacing supply, which benefits companies like Royal Caribbean that can expand their capacity and capture market share. The Icon Class ships, known for their superior facilities and yield premiums, contribute positively to the company’s return on invested capital (ROIC), driving valuation. With these strategic moves, Royal Caribbean is well-positioned to capitalize on industry trends and maintain its competitive edge, justifying Clarke’s Buy rating.
In another report released on September 15, J.P. Morgan also assigned a Buy rating to the stock with a $367.00 price target.
Based on the recent corporate insider activity of 59 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of RCL in relation to earlier this year.