Story updated at 9:55 a.m. to reflect market activity.
Shares of Royal Caribbean Cruises were gaining 5.1% to $76 in morning trading.
The analyst firm said the new price target "represents a 15 forward PE on our 2016E EPS of $6.26," for the cruise line. "This change now brings our valuation methodology in line with that of Carnival Corp. (CCL) and Norwegian (NCLH) ," analyst Felicia R. Hendrix wrote.
Hendrix said the higher price target is consistent with Barclays' previous "upside scenario" for Royal Caribbean stock, adding that the firm's new "upside case" is $103 "and is based on an incremental 1 point of yield growth in 2015 and 2016 and a 15 forward P/E multiple."
Separately, TheStreet Ratings team rates ROYAL CARIBBEAN CRUISES LTD as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate ROYAL CARIBBEAN CRUISES LTD (RCL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 3.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 32.72% and other important driving factors, this stock has surged by 58.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- ROYAL CARIBBEAN CRUISES LTD has improved earnings per share by 32.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ROYAL CARIBBEAN CRUISES LTD increased its bottom line by earning $2.14 versus $0.07 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus $2.14).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Hotels, Restaurants & Leisure industry average. The net income increased by 34.0% when compared to the same quarter one year prior, rising from $365.70 million to $490.25 million.
- You can view the full analysis from the report here: RCL Ratings Report