Royal Caribbean initiated with an Outperform at Bernstein

Bernstein analyst Richard Clarke initiated coverage of Royal Caribbean (RCL) with an Outperform rating and $290 price target With a favorable view on the long term trajectory of the wider cruise industry, the firm sees Royal as the best way to play the sector. The company has a “crystal clear strategy” of modest capacity growth, modest yield growth and cost discipline driving the underlying algorithm, while mix impacts from new ships, and adding more of the new breed of exclusive destinations will be supportive of yield growth ahead of the wider industry, the analyst tells investors in a research note.