Investors may want to use weakness to buy Royal Caribbean (RCL).
According to Stifel analysts, the pullback creates a “solid buying opportunity,” given the company’s health liquidity, resilient customers, and operational expertise, as highlighted by Barron’s. RCL also pulled back on Carnival’s news it wanted the option to sell $500 million of its shares to buy back its UK-listed stock.
Technically, RCL is still in a strong uptrend. In fact, if you pull up a two-year chart, and draw your trend lines from the low of $66.65, you can see the ascending triangle. From a current price of $83.40, we’d like to see RCL break above double top around $100.
Helping, JP Morgan analyst Brandt Montour raised the firm’s price target on RCL to $123 from $112. “Positive bookings momentum and pricing continues for the broader cruise industry,” the analyst said, as noted by The Fly. “The analyst’s monthly pricing survey outlook indicates strength in ticket pricing and he highlights the “flurry of restart announcements” as well as confidence from managements on his recent calls.”