Citing limited upside in net yields/pricing, JPMorgan has downgraded Royal Caribbean Cruises Ltd
“[W]e do not see a meaningful fundamental turn in net yields/pricing, which, in our view, would be the biggest potential reason for investor sentiment to turn positive and/or the multiples to move higher,” analyst Joseph Greff wrote in a note.
Greff sees Norwegian as having relatively attractive EPS growth in 2017, though driven primarily by capacity. At the same, the analyst also cautioned that the company possesses the most EPS risk due to soft pricing in
“CCL trades at a valuation premium to both NCLH and RCL, reflective of its relatively better Europe exposure, its solid balance sheet position and dividend yield, in our view. We view RCL’s risk-reward as in between CCL and NCLH,” Greff continued.
Greff pointed out at fewer North American passengers traveling to European destinations, capacity challenges in Caribbean, while price discipline hurting near term occupancy and onboard.
On Royal Caribbean, the analyst is concerned over declining net yields from
For Carnival, apart from rich valuation, the analyst said the company is pressured by slowing GDP growth, terrorism and
Greff also slashed his price targets for
Each of the three experienced negative investor reaction Thursday. At last check:
- Carnival was down 1.68 percent at $46.36.
- Norwegian was down 5.08 percent at $36.04.
- Royal Caribbean was down 2.86 percent at $67.90.
|Oct 2016||Macquarie||Initiates Coverage on||Neutral|
|Oct 2016||HSBC||Initiates Coverage on||Buy|
|Sep 2016||Deutsche Bank||Initiates Coverage on||Hold|
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