Nomura Securities Maintains a 'Buy' on Royal Caribbean (RCL); Q3 Review

Nomura Securities maintains a 'Buy' on Royal Caribbean Cruises (NYSE: RCL) price target of $36.00.

Nomura analyst, Harry Curtis, said, "RCL didn’t offer specifics for 2012, but its commentary indicated that bookings and yields were both “up nicely” next year. Bookings could be 300-400bp ahead of last year with pricing up ~2-4%. We expect 2% net yield growth next year, but there could be upside from the Mediterranean, which is facing easy comps and lower capacity. We are struck by the common lack of interest in RCL given the potential for 17% EPS growth in 2012 and 19% 2013. The stock is currently discounting flat 2012 yield, which is unlikely, and is trading at a 15% discount to its “sluggish economy” average forward multiple of 11.0x. If recent pricing trends continue, RCL’s multiple could expand to ~13x."

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 $30.52 yesterday.

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