Royal Caribbean Stock Climbs On Analyst Upgrade, But Retail Awaits More Signs Of A Cruise Revival

Shares of Royal Caribbean rose nearly 2% on Wednesday after the company received an analyst upgrade following its investor day, but retail sentiment stayed subdued.

Loop Capital upgraded Royal Caribbean to ‘Buy’ from ‘Hold’ with an unchanged price target of $250, The Fly reported.

The research firm noted the better-than-expected outlook by the company and suggested investors take advantage of the stock’s pullback, especially as shares are nearly 15% lower since its initiation last month, said the report.

Royal’s stock is trading closer to its historical valuation, but its upside is “justified given the expectations of over 20% annual earnings on top of difficult comparisons,” according to Loop Capital, which noted that the company is also "favorably disposed" to the entire cruise industry and Royal Caribbean’s leadership position.

JPMorgan raised the firm's price target on Royal Caribbean to $298 from $295 with an Overweight following the investor day.

According to JPMorgan, Royal Caribbean's growth story is "just getting started,” as per The Fly.

Sentiment on Stocktwits was cautious, ending Wednesday in the ‘neutral’ zone. Message volume inched up in the ‘normal’ territory.

For its next earnings, Wall Street analysts expect the company to post $2.52 in earnings per share on revenue of $4.01 billion.

Royal Caribbean stock has fallen 14% in the last month and 0.27% year-to-date.

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