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    A Decade of Revolution Declare Your Research Independence


Granted, the cruise stocks will probably not go down as long as oil is falling 3% per day. However, we believe investors are baking in 2015/2016 estimates that are too high, certainly higher than current sell-side estimates.  Adverse foreign currency moves will eat into the fuel related EPS tailwind that appears to be already discounted into the stocks.  

In this note, we analyze the assumptions necessary for RCL to meet its Double-Double target on a ship-by-ship basis. Meeting or beating that target seems to be factored into the stock and while Double-Double is certainly achievable, cannibalization and a stronger dollar may be significant hurdles.

Please see more details in our note: CLICK HERE