On April 23, we noted, “Keep an eye on Royal Caribbean (RCL). After a recent pullback, the cruise stock is oversold on RSI, MACD, and Williams’ %R. It also just caught support at its 50-day moving average and is starting to pivot higher.”
At the time, RCL traded at $133. Today, it’s up to $141.59 and could push even higher on strong travel demand. Not only did the company hike its guidance, but it also says it’s hiring thousands just to help keep up with record cruise demand.
As noted by Seeking Alpha,” Demand for cruises is on the rise, with Royal Caribbean’s bookings surging to record levels in Q1 despite higher ticket pricing. Consumer spending onboard and pre-cruise purchases have also been strong, leading to the company raising its dividend.”
Analysts at Bank of America also just raised their price target on RCL to $145 from $135. The firm’s estimates suggest Royal could return to pre-pandemic leverage levels by Q1 of 2025, which “could put the company in a position to consider capital returns,” added the firm, as quoted by TheFly.com.
Sincerely,
Ian Cooper
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