J.P. Morgan Overweight On Royal Caribbean (RCL)

J.P. Morgan Chase & Co. has an Overweight rating on Royal Caribbean Cruises RCL and a $51 price target on shares. In a note sent to clients, J.P. Morgan writes, "We attended RCL's analyst/investor meeting onboard the Allure of the Seas on 11/22/10. The event was held during RCL's "Cruise to Nowhere," that showcased its newest Royal Caribbean International (RCI) branded vessel, the 5,400-berth Allure of the Seas (the sister ship to the Oasis of the Seas, the world's largest cruise ship). By and large, we were equally as impressed with the Allure (as we were with the Oasis last November), and can easily see why it is such a popular ship with cruisers, as it literally has something on the ship for everyone. While nothing entirely incremental came out of the analyst meeting (following RCL's 3Q10 earnings on 10/26), RCL management remained particularly bullish on its relatively young/technically advanced fleet (that will drive improved ROICs), cruise operating fundamentals, and improving balance sheet position. We remain positive on RCL's investment story and maintain our Overweight rating." Shares of RCL lost $1.21 yesterday to close at $40.43, a loss of nearly 3%.