Stifel Reiterates Buy Rating on Royal Caribbean Cruises (RCL)

Stifel analyst Steven Wieczynski reiterated a Buy rating and $25.00 price target on Royal Caribbean Cruises (NYSE: RCL).

The analyst comments "F2Q24 Financial Review: Gross/net revenue was $5.8B/$4.4B, slightly ahead of our consensus-matching forecast of $5.7B/$4.3B. Fuel expense was $525M ($684/MT) and net interest expense was $425M. Adjusted EBITDA was $1.2B, beating guidance by $147M. We were forecasting adjusted EBITDA of $1.1B, essentially in line with the consensus estimate. GAAP/adjusted EPS were $0.07/$0.11, respectively, well ahead of our forecasted EPS of ($0.01), which was also in line with consensus. Revenues meaningfully exceeded pre-pandemic levels in F2Q24 (+19% vs. F2Q19) and were up 18% y/y. Customer deposits were $8.3B at the end of F2Q24, a ~$1.3B increase from F1Q24 quarter-end and ahead of the previous high watermark by ~15%. Management revised FY24 guidance for adjusted EBITDA to ~$5.83B (~ $5.63B prior), constant currency net yield growth of 10.25% (+9.5% prior), and NCC ex-fuel growth of 4.5% (+5.0% prior)."

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 $154.52 yesterday.

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