Citadel Securities Starts Royal Caribbean Cruises (RCL) at Add; "A Crude Awakening"

Citadel Securities initiates coverage on Royal Caribbean Cruises (NYSE: RCL) with an Add.

Citadel analyst says, "With unrest in the Middle East/North Africa (MENA) region, coupled with a weaker USD, crude oil prices have spiked 36% since 2/15/11, resulting in Carnival and Royal Caribbean shares declining roughly 19%, while the S&P 500 was flat. We believe these events/concerns have trumped improving fundamentals in the $26B cruise industry, which could result in CCL and RCL delivering nearly $10.6B in cumulative FCF for 2011-2013. As such, we see a compelling buying opportunity here for investors to build long-term positions in CCL and RCL at what we think are reasonable valuations, and initiate both at Add with PTs of $45 and $57, respectively."

For more ratings news on Royal Caribbean Cruises click here and for the rating history of Royal Caribbean Cruises click here.

Shares of Royal Caribbean Cruises closed at $38.56 yesterday.

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