William Blair analyst Sharon Zackfia has reiterated their bullish stance on RCL stock, giving a Buy rating on July 21.
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Sharon Zackfia has given her Buy rating due to a combination of factors that indicate a strong performance by Royal Caribbean. The company is expected to deliver another robust quarter, driven by widespread momentum across its operations. This includes anticipated second-quarter net yields, adjusted for constant currency, which are projected to meet or exceed the upper end of the guidance at 4.8%, supported by strong ticket pricing and onboard spending.
Moreover, despite an increase in cruise costs excluding fuel, which is expected to rise by 3.7% due to more dry dock days and a timing shift from the first quarter, the company is still projected to achieve earnings per share of $4.10. This represents a 28% increase and aligns with the higher end of expectations, reinforcing the positive outlook and justifying the Buy rating.
In another report released on July 21, TD Cowen also initiated coverage with a Buy rating on the stock with a $405.00 price target.