UPDATE: ABG Sundal Collier Downgrades Royal Caribbean Cruise; Lowers PT

According to a research report published today, ABG Sundal Collier has downgraded Royal Caribbean Cruises

from Buy to Hold until ticket prices stabilize. “Carnival revised down its 2012 net yield guidance by 1.5pp to 0% on a constant currency basis and excluding Costa. Since the Costa Concordia accident, bookings are running at ‘high single digits' behind last year and at lower prices – there has been a gradual improvement but this is likely in response to lower ticket prices and increased marketing activity. We lower our EPS forecasts by 7% and 3% for 2012e and 2013e, respectively, reflecting higher fuel costs, FX and changes to net yield. This leaves us 14% below consensus at USD 2.22 on 2012e EPS. Rising fuel costs coupled with falling ticket prices and a continued weak economic climate in Europe are not the best near-term share price triggers. We hence downgrade to HOLD (Buy) with a new target price of USD 28 (36 per share). Royal Caribbean Cruise is currently trading at $28.13.