(Updated to include analyst commentary.)

BofA upgraded Royal Caribbean Group (RCL) to buy from neutral as travel spend remains "very strong" although macroenvironment risk persists.

The cruise ship operator "is a high-quality business that generates ROIC in the high-teens, EBITDA margins of nearly 40%, has an investment grade balance sheet, is over 50% hedged on 2027 fuel, and recently announced an investment in Sandals Resorts, analysts Andrew G. Didora and John Gellene wrote in a Monday note.

Royal Caribbean is also "well positioned" to grab additional market share, the analysts mentioned.

Royal Caribbean has an average rating of overweight and mean price target of $351, according to analysts polled by FactSet.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

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