Royal Caribbean upgraded to Buy at Truist on above-consensus expectations

Truist upgraded Royal Caribbean to Buy from Hold with a price target of $137, up from $115. At its investor day last fall, the company targeted EPS of at least $10 in 2025 and since that time the company has had “two massive beat & raise earnings reports,” says the analyst, who now thinks “$12 of EPS in 2025” is the new “$10 of EPS in 2025”. Truist is raising its 2024 EPS estimate to $9.10 from $7.14 and 2025 EPS forecast to $11.95 from $10.10, noting that its view for both years are “well above consensus expectations.”