J.P. Morgan analyst Matthew Boss has maintained their bullish stance on RCL stock, giving a Buy rating on February 7.
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Matthew Boss has given his Buy rating due to a combination of factors that highlight Royal Caribbean’s strong financial position and growth prospects. One key factor is the company’s successful return to investment-grade status, as evidenced by S&P’s upgrade of Royal Caribbean’s long-term rating to BBB-. This upgrade reflects the company’s improved leverage profile, which is expected to continue decreasing over the next few years, making it a leader in the cruise industry in terms of financial stability.
Additionally, Royal Caribbean’s balanced capital allocation strategy is a significant driver of its total shareholder return profile. The company has increased its quarterly dividend by approximately 36%, resulting in a 1.2% dividend yield, and announced a $1 billion share repurchase program, reflecting confidence in its business and commitment to delivering long-term value to shareholders. Furthermore, the company’s robust free cash flow generation projected for 2025-2027 enhances its potential for accretive share repurchases and supports a growth trajectory in earnings and operating income, ultimately contributing to a potential 20% total shareholder return.
According to TipRanks, Boss is a 3-star analyst with an average return of 2.1% and a 49.40% success rate. Boss covers the Consumer Cyclical sector, focusing on stocks such as Boot Barn, Abercrombie Fitch, and American Eagle.
In another report released on February 7, Tigress Financial also reiterated a Buy rating on the stock with a $330.00 price target.