Royal Caribbean shares fall due to downgrade
2022.12.06 10:24
Royal Caribbean shares fall due to downgrade
Budrigannews.com – Cruises by Royal Caribbean (NYSE:) After JPMorgan analysts lowered the rating to Underweight, the stock fell nearly 3.5% today. The prior price target of $106 has been lowered to $47 per share.
Norwegian Cruise Line (NYSE:) is the choice of the analysts. to Carnival Corporation and RCL (NYSE:) because of the “more vulnerable to near-term ebbs and flows of financial market conditions given the magnitude and timing of future capital commitments” of the latter two.
“Our analysis suggests that RCL could face a $400m funding shortfall by the end of next year,” the analysts stated in a client note. “Despite roughly $10b of capital raises so far this year and FCF generation that should cover most (but not all) future commitments,” they added.
At Overweight and Neutral, JPMorgan assumed research coverage on NCLH and CCL, respectively. After the most recent checks revealed that the company “has the most forward pricing momentum of the three publicly traded players,” the analysts give NCLH their preference.
They came to the conclusion that “Norwegian’s latest addition, the Prima, appears to be garnering the largest premium relative to its existing fleet.”
