Royal Caribbean price target raised to $126 from $100 at BofA

BofA raised the firm’s price target on Royal Caribbean (RCL) to $126 from $100 and keeps a Neutral rating on the shares. Given the move lower in rates since early November, the firm is raising its target multiples on both Royal and Norwegian Cruise Line (NCLH), but believes Norwegian should trade at a discount to Royal given higher leverage and a slower post-pandemic earnings recovery. Buy-rated Carnival (CCL) remains its top pick in the cruise space given cheaper valuation and delevering potential, the analyst noted.