Royal Caribbean's Undervalued Potential: Why Strong Bookings And Operational Expertise Make It A Buy
Portfolio Pulse from Nabaparna Bhattacharya
Stifel analyst Steven M. Wieczynski reiterated a Buy rating on Royal Caribbean Cruises Ltd. (NYSE:RCL), but lowered the price target to $130 from $135 due to higher fuel headwinds and negative FX moves. Despite lowering the FY24 and FY25 EPS and revenue estimates, Wieczynski believes that RCL's current share price reflects under-appreciation of the company’s liquidity, operational expertise, and customer resilience. He also sees a two-to-three-year pent-up backlog in demand and encourages investors to accumulate shares at current levels.
September 15, 2023 | 6:46 pm
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Stifel analyst lowers price target on RCL due to higher fuel costs and FX headwinds, but maintains Buy rating due to strong demand and under-appreciation of company's strengths.
The analyst's lowered price target could negatively impact RCL's stock price in the short term. However, the reiterated Buy rating and the belief in the company's under-appreciated strengths and strong demand could offset this negative impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100