Deutsche Bank Starts Royal Caribbean Cruises (RCL) at Hold

September 29, 2016 7:02 AM EDT
Get Alerts RCL Hot Sheet
Price: $70.63 +0.40%

Rating Summary:
    19 Buy, 11 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 23 | New: 30
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Deutsche Bank initiated coverage on Royal Caribbean Cruises (NYSE: RCL) with a Hold rating and a price target of $81.

Analyst Chris Woronka said, "Even based on our below consensus 2017 forecast, RCL will in fact have doubled EPS since 2014 and the 10%+ ROIC target appears well within reach as well. RCL also very recently hiked its dividend by 28% (yield: 2.6%), which could bolster its investment appeal. And while we view apparent valuation (10.9x 2017E P/E) as more than reasonable, we believe investors likely need to get comfortable that projected out-year growth will in fact come to fruition. Our view is that likely won't occur until at least such time as we have a more firm grasp on how 2017 bookings--in totality--are trending. In light of all of these considerations, we initiate with a Hold rating and $81 PT."

For an analyst ratings summary and ratings history on Royal Caribbean Cruises click here. For more ratings news on Royal Caribbean Cruises click here.

Shares of Royal Caribbean Cruises closed at $74.21 yesterday.

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