NEW YORK (TheStreet) -- Shares of Royal Caribbean Cruises (RCL) - Get Report were falling in early afternoon trading on Thursday ahead of the company's 2016 third quarter earnings report, due out before Friday's opening bell.

Analysts surveyed by FactSet are looking for the Miami-based cruise operator to post earnings of $3.10 per share on revenue of $2.58 billion.

In the same quarter last year, Royal Caribbean reported adjusted earnings of $2.84 per share on revenue of $2.52 billion.

JPMorgan downgraded the stock to "neutral" from "overweight" and cut its price target to $73 from $96 earlier today, the Fly reports.

Royal Caribbean's third quarter results could be hurt by "eroding net yields" in the China business, "ongoing weakness" in Europe and an expected 50% rise in cruise ship capacity in 2017, the firm said.

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The firm does not anticipate a "meaningful fundamental return" in net yields or pricing in the cruise sector, according to the Fly.

JPMorgan also reduced its rating on cruise company Norwegian Cruise Line (NCLH) to "neutral" from "overweight" and lowered its price target to $44 from $63 today. The firm kept a "neutral" rating on Carnival (CCL) but trimmed its price target to $46 from $58.

Separately, TheStreet Ratings objectively rated Royal Caribbean stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

You can view the full analysis from the report here: RCL

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