Royal Caribbean's stock falls after CFRA swings to bearish on 'more dire' coronavirus assessment
Shares of Royal Caribbean Cruises Ltd. slumped 1.4% toward a 3-month low in afternoon trading Monday, after CFRA analyst Tuna Amobi swung to bearish from bullish on the cruse operator, citing a "more dire assessment" of the potential negative impact from the coronavirus outbreak from China. Amobi cut his rating to sell from buy, and slashed his stock price target to $100, which is 9% below current levels, from $135. "With the geopolitical fallout of the outbreak seemingly intensifying in the past week, we now see a potentially significant downside to RCL's '20 financial targets," Amobi wrote in a note to clients. The company reported last week fourth-quarter earnings that matched expectations and provided a 2020 outlook that surrounded consensus analyst forecasts, but said that outlook didn't include the impact of the coronavirus, which Chief Executive Richard Fain made clear was still uncertain. The stock has now lost 18.9% since it closed at a record $135.05 on Jan. 17, while the S&P 500 has gained 0.3%.
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