Barclays Says Buy Royal Caribbean (RCL) Shares on Any Carnival-Related Weakness

While shares of Carnival Corp. (NYSE: CCL) have tumbled about 14 percent following news over the weekend its Costa Concordia vessel shipwrecked off the coast of Italy, shares of close competitor Royal Caribbean (NYSE: RCL) are holding up relatively well. RCL shares last traded at $27.48, down 4.4 percent from Friday's close.

Potentially giving legs to the shares this afternoon (and maybe offsetting weakness from a Susquehanna downgrade), Barclays analyst Felicia Kantor Hendrix told clients to add to positions in Royal Caribbean on "any market dislocation" following the tragedy. Although the analyst admitted the event will likely have industry-wide implications, the impact should remain relatively specific to Carnival.

Hendrix noted the cruise sector's solid start to the 2012 wave season, and suggested any dip in domestic bookings would be temporary.

Barclays maintains an Overweight rating and $38 price target on shares of Royal Caribbean.

To track all the market-moving analyst action on shares of Royal Caribbean, visit our Analyst Ratings page.

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