Royal Caribbean (RCL) PT Lifted at Nomura
Nomura Securities analyst Harry C. Curtis raised his price target on Buy-rated Royal Caribbean Cruises (NYSE: RCL) from $41 to $44 following Q2 earnings.
Curtis comments, "RCL lowered its 2013 net yield outlook by 50bps, or $30m, due to three factors: 1) a $15m accounting SNAFU with its affinity credit card (disappointing), 2) cruises in Asia were disrupted by a territorial dispute between China and Japan, which cost $7m, and 3) modestly lower prices in the Caribbean, which cost $7m. RCL is ~25% booked for 2014 at higher prices than last year across all four quarters. We are reducing our 2013E EPS to reflect lower yield growth in 3Q. However, our 2014E EPS increases based on flat NCCs next year and a modest yield expectation of +2.8%. As a result, our price target goes to $44 from $41, upside of ~20%. We continue to recommend buying both RCL and NCLH heading into the 4Q Wave trade. FY13E EPS from $2.37 to $2.32; FY14E EPS from $2.75 to $2.95.
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 $36.57 yesterday, with a 52 week range of $22.45-$38.62.
Curtis comments, "RCL lowered its 2013 net yield outlook by 50bps, or $30m, due to three factors: 1) a $15m accounting SNAFU with its affinity credit card (disappointing), 2) cruises in Asia were disrupted by a territorial dispute between China and Japan, which cost $7m, and 3) modestly lower prices in the Caribbean, which cost $7m. RCL is ~25% booked for 2014 at higher prices than last year across all four quarters. We are reducing our 2013E EPS to reflect lower yield growth in 3Q. However, our 2014E EPS increases based on flat NCCs next year and a modest yield expectation of +2.8%. As a result, our price target goes to $44 from $41, upside of ~20%. We continue to recommend buying both RCL and NCLH heading into the 4Q Wave trade. FY13E EPS from $2.37 to $2.32; FY14E EPS from $2.75 to $2.95.
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 $36.57 yesterday, with a 52 week range of $22.45-$38.62.