Royal Caribbean, Carnival Cruise Toward 'The Next Wave of the Rising Tide': Goldman Sachs
Portfolio Pulse from Piero Cingari
Goldman Sachs has issued Buy ratings for Royal Caribbean (RCL) and Carnival Corp. (CCL), and a Neutral rating for Norwegian Cruise Lines (NCLH), citing industry shifts leading to improved business models and multi-year pricing tailwinds. Key factors include favorable supply/demand, new ship launches, advancements in revenue management, and land investments. RCL is noted for its leadership and upcoming launches like Icon of the Seas, expected to generate significant ticket price premiums.

March 13, 2024 | 2:48 pm
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NEUTRAL IMPACT
Norwegian Cruise Lines was given a Neutral rating by Goldman Sachs with a price target of $19, citing less conservative guidance for 2024 and pending cost efficiencies.
The Neutral rating and price target for NCLH reflect Goldman Sachs' cautious stance due to less conservative guidance for 2024 and the need for evidence of cost efficiencies. This suggests a neutral short-term impact on NCLH's stock as the market awaits further developments.
CONFIDENCE 70
IMPORTANCE 70
RELEVANCE 75
POSITIVE IMPACT
Carnival Corp. received a Buy rating from Goldman Sachs with a price target of $20, supported by a favorable outlook for 2024, brand improvements, and investments.
The Buy rating and price target for CCL are based on Goldman Sachs' anticipation of a favorable outlook for 2024, driven by brand improvements, controlled supply growth, and significant private island investments. These factors are expected to contribute to CCL's stock appreciation in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 85
POSITIVE IMPACT
Goldman Sachs issued a Buy rating for Royal Caribbean with a price target of $162, highlighting its leadership and the expected success of new ships like Icon of the Seas.
The Buy rating and optimistic price target reflect Goldman Sachs' confidence in RCL's strategic fleet optimization and the expected success of new ship launches. The anticipated demand for new vessels like Icon of the Seas, which is expected to generate ticket price premiums, supports a positive outlook for RCL's stock in the short term.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90