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Royal Caribbean: Better Growth Than Carnival, Less Risky Than Norwegian

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Royal Caribbean: Better Growth Than Carnival, Less Risky Than Norwegian

Macquarie weighed in on the state of the cruise industry with Royal Caribbean Cruises Ltd (NYSE: RCL) emerging as its top pick.

Analysts at Macquarie initiated coverage on Royal Caribbean, setting an $88 target with an Outperform rating. Royal Carribean is seen as a line with good growth but less risky than Norweigian Cruise Line Holdings Ltd (NASDAQ: NCLH).

Macquarie also initiated coverage on Carnival Corp (NYSE: CCL) with a Neutral rating and $55 price target.

Related Link: Norwegian Cruise Lines Conservative Guidance May Be Overly Conservative

A note cited Royal Caribbean's stronger global brand, leading position in China, and a CEO that has been buying shares in the company as positive catalysts for growth. The company has lowered reported capacity growth in 2017, but analysts feel that it's setting up an easy capacity comparison for 2018.

"For investors willing to look past the current downgrade cycle, we think RCL is best positioned," said Macquarie.

Royal Caribbean stock was flat Tuesday.

Latest Ratings for RCL

DateFirmActionFromTo
Mar 2021UBSMaintainsBuy
Mar 2021JP MorganMaintainsOverweight
Feb 2021JP MorganMaintainsOverweight

View More Analyst Ratings for RCL
View the Latest Analyst Ratings

 

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Posted-In: MacquarieAnalyst Color Price Target Initiation Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
SCYXAegis CapitalMaintains40.0
ARGOBoenning & ScattergoodDowngrades
TLSAZacks Investment ResearchInitiates Coverage On7.5
TOTJP MorganUpgrades
WSOMorgan StanleyMaintains244.0
View the Latest Analytics Ratings
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