Royal Carribean Cruises "buy," target price raised

03/02/04 - Deutsche Bank

LONDON, March 2 (New Ratings) - Analyst Jolie Whitmoyer of Deutsche Bank reiterates her "buy" rating on Royal Caribbean Cruises (RCL.OL). The target price has been raised from NOK320 to NOK350.

Shares of Royal Caribbean Cruises, a worldwide provider of premium cruises, are currently trading at NOK306.5.

According to Deutsche Bank's research note published this morning, the company witnessed continued momentum in its cruise bookings trend in the month of February. The company's cruise bookings in February surpassed the previous month’s level, the analyst reports. Royal Caribbean’s cruises continue to be booked at premium prices, with an upsurge in demand for Voyager class vessels, the analyst adds. Deutsche Bank believes that the upswing in US tourist interest in European cruises have boosted the demand for the company’s services.

There may be an upward revision of the estimates if the bookings trend continues during March. A downturn in the US economy and leisure travel patterns constitute the risks for the company's healthy recovery in 2004, Deutsche Bank says.

The EPS estimates for 2004 and 2005 are $2.16 and $2.56, respectively.

Deutsche Bank reiterates its "buy" rating on Royal Caribbean Cruises.