American cruise liner Royal Caribbean Cruises Ltd. (NYSE:RCL) is set to release its Fiscal fourth quarter 2022 results on February 7, before the market opens. The Street expects Royal Caribbean to post an adjusted loss of $1.34 per share on revenues of $2.61 billion. This reflects a remarkable improvement over Q4FY21 results when the company posted an adjusted loss of $4.78 per share on revenues of $982.25 million.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Analysts’ View on the Cruise Industry
The cruise line industry is poised for a solid rebound in 2023, with analysts also projecting a positive earnings view for RCL for FY23. Moreover, full-year revenues are expected to surpass pre-pandemic levels, thus showing a healthy year ahead for RCL.
Analysts and investors will keenly watch RCL’s bookings and occupancy levels to gauge how the cruise liner will fare in 2023, as travelers usually pre-book cruises months in advance. Further, any company comment on RCL’s debt management, which ballooned during the pandemic, will provide much clarity to shareholders.
Recently, Citigroup analyst James Hardiman called RCL his top pick among cruise stocks and reiterated a Buy rating on RCL with a price target of $80 (16.9% upside potential).
As per the analyst, cruise stocks are offering “compelling long-term investment narratives,” with travel demand momentum significantly outweighing the macroeconomic headwinds expected in 2023. Notably, after losing 16.5% in the past year, RCL stock is already up 40.5% so far in 2023.
Is RCL a Buy or Sell?
On TipRanks, RCL stock has a Moderate Buy consensus rating based on four Buys versus two Hold ratings. Also, the average Royal Caribbean price forecast of $74.33 implies 8.6% upside potential from current levels.
