NEW YORK (TheStreet) -- Shares of Royal Caribbean Cruises (RCL) are up 5.77% to $76.46 after it was reported that the company will replace packaging products company Bemis Co. (BMS) in the S&P 500, as Bemis moves to the S&P MidCap 400, the Wall Street Journal reports.
Royal Caribbean's shares have soared 60% in 2014, and added another 5.4% in recent trading after the index-addition news, according to Barron's.
Traders tend to cheer index additions since the result in forced buying for index-tracking mutual and exchange-traded funds, Barron's added.
The changes are effective after the close of trading on Thursday.
Also,, Barclays raised its price target for Royal Caribbean Cruises to $94 from $75 today, reiterating its "overweight" rating.
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."