Royal Caribbean: Best Buy In The Cruise Industry – Royal Caribbean Cruises Ltd. (NYSE:RCL)

The Opportunity

Royal Caribbean Cruises Ltd. (RCL) is a cruise company established in Norway with headquarters in Miami, FL. After Carnival Corporation & plc. (CCL/CUK) Royal Caribbean is the second biggest cruise operator in the world.

The company’s business model is based on convincing the consumer that cruises are a better holiday option than traditional resort vacations destinations. The company has been executing on this value add and is making cruises a popular vacation choice among families, couples and single travelers.

Based on guidance that the company has made for the second half of 2018, the stock price has room to run heading into 2019. Royal Caribbean is the best buy in the cruise industry and I derive a fair value for the stock of $139, which is based on a 14 times 2019…

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