BUY OR SELL-Smooth seas for Royal Caribbean?

Wed Nov 11, 2009 6:03pm GMT
 
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* 15 analysts rate the stock a "buy"

* Firming of pricing bodes well for earnings - analyst

* Long-term problems remain, could pressure shares

By Deepa Seetharaman

WASHINGTON, Nov 11 (Reuters) - After a nine-month surge, can Royal Caribbean's stock keep cruising?

Shares of Royal Caribbean Cruises (RCL.N)(RCL.OL) have more than tripled since early March, spurred by an upswing in the broader market and signs that ticket prices are starting to stabilize.

While Royal Caribbean executives said last week that there was still little evidence of an economic rebound in its business, they do not see a need to discount prices to the levels seen earlier this year. [ID:nN02460627]

The world's No. 2 cruise operator expects to post a loss for the fourth quarter -- missing Wall Street expectations for a profitable quarter, but reiterated its outlook for positive net revenue yields in 2010.

FULL STEAM AHEAD  Continued...

 

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