BUZZ - Deutsche Bank upgrades Royal Caribbean Cruises to "Buy", shares rise

September 28 - ** Royal Caribbean Cruises (RCL.N) shares rose about 1% pre-market to $245.70

** Deutsche Bank upgraded the rating from “Hold” to “Buy”, stating that the 26% share price decline since August 5 has made the current risk-reward ratio more attractive

** The analysis report attributed the recent share price weakness to rising oil prices, as well as investor concerns over the sustainability of earnings growth amid Norwegian Cruise Line’s NCLH.N 2027 booking strategy and planned Caribbean capacity expansion

** It added that RCL is investing $3 billion in a joint venture, which will give it a 50% stake in Sandals Resorts; it noted investors initially appeared skeptical of the deal, but believes its economic benefits are quite attractive

** It pointed out that the positive share price reaction after Carnival Corp’s (CCL.N) financial report released on September 29 may also provide support to RCL

** Of 29 brokerage firms, 22 rate the stock as “Buy” or higher, while 7 recommend “Hold”; the median target price is $346.50

** As of yesterday’s close, the stock has fallen about 13% so far this year

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