BofA upgrades RCL to buy; $330 PT based on <10x 2027E EBITDA and ~40% margins.
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Let's talk about Royal Caribbean this morning and its rating upgrade. Yes, there is a good report from Bank of America about Royal Caribbean. They are upgrading its rating to " buy" from "neutral".
They are maintaining their $ 330 target price for Royal Caribbean. That hasn't helped it sail at the moment, but they expect more momentum here. The argument lies in the evaluation. I think the stocks have fallen too much.
It has fallen by more than 26% , and when we talk about an annual basis, it is about 25%. Bank of America now says it is trading at less than 10 times its projected 2027 earnings before interest, taxes, depreciation and amortization.
They are impressed with the direction in which profit margins are going. They point out that the profit margin is close to 40%, with strong returns on invested capital and an investment-grade balance sheet.
They have enjoyed a strong balance sheet, especially when compared to their peers.
They have covered more than half of the projected fuel costs for 2027, so they have some protection if fuel prices continue to rise.
Yes, it just hit that low level of 222, as recently as September. So , you know that there is a $100 increase from that recent low level.
What this channel has said about $RCL
Schwab Network has only this one call on this stock.