Royal Caribbean price target raised to $275 from $272 at Truist

Truist raised the firm’s price target on Royal Caribbean (RCL) to $275 from $272 and keeps a Buy rating on the shares as part of a broader research note on Cruise stocks. The firm’s May demand and price survey makes it clear that weak consumer confidence is having a sizable impact, but given the extended length of the booking window, the impact may not show up in metrics and results until at least Q3, the analyst tells investors in a research note. While overall headline ticket pricing growth on new bookings is staying strong, up mid-to-high single digits y/y, the firm has also begun to see significant promotion and value-add activity to entice bookings for all types of cruises, Truist adds. The firm notes however that Royal Caribbean is a name that is benefiting from the macro shift in consumer spend to experiences from goods, stating that its “outside the box” initiatives are encouraging and a major driver of why earnings growth has been so strong post-Covid.