Loop Capital upgrades Royal Caribbean to Buy after analyst day

Loop Capital upgraded Royal Caribbean (RCL) to Buy from Hold with an unchanged price target of $250. The outlook offered at the company’s analyst day is better than expected, the analyst tells investors in a research note. The firm recommends taking advantage of the pullback in the stock, noting the shares have traded nearly 15% lower since its initiation last month. Loop is “favorably disposed” to the entire cruise industry, and says Royal has been a leader in financial performance since Covid. The stock is trading closer to its historical valuation, but upside is justified give the expectations of over 20% annual earnings on top of difficult comparisons, contends the firm.