- NYSE: RCL is on the rise on the day that the US beings vaccinating its population against COVID-19.
- A return to normal would allow Royal Caribbean Cruises to bring elderly customers onboard.
- Investors are shrugging off the firm’s financial woes.
A small clinic in Long Island, New York, administered the first coronavirus vaccine in the US and own in Miami Florida, management at Royal Caribbean Cruises (NYSE: RCL) is also cheering. The Pfizer/BioNTech jab will probably be joined by other immunizations in bringing the world’s richest country to controlling the disease that has killed nearly 300,000 people.
Most of the cruise sector’s clientele are elderly people that are more likely to develop serious COVID-19 illness and have a higher chance to pass away. Moreover, many of those opting for a sedentary vacation on the seas suffer from additional health issues, increasing their risk. If everything goes to plan, most of these high-risk individuals – which have priority – will be immune to covid within several months.
The grand effort has begun on Monday after the Food and Drugs Administration (FDA) approved the drug on Friday. The regulator will likely grant Moderna’s authorization as early as the end of this week.
The upbeat news comes after a bruising year to cruising and Royal Caribbean in particular.
RCL stock forecast
NYSE: RCL is trading up by 0.79% on Monday, changing hands at $76.94, a far cry from the 52-week high of $135.32. Cruising ships were seen as floating contagion spaces after the Diamond Princess was moored at the Tokyo bay early in the year. More recently, a cruise ship that went for a sail out of Singapore had to halt its journey after a client became a covid patient.
Moreover, and contrary to rival Carnival, RCL has financial issues. Alongside Norweigan Cruise Line, another competitor, Royal was put on credit watch by S&P Global Ratings. The renowned credit rating firm cited extensions of cruising suspensions as the primary reason for the warning.
Overall, there is room for recovery, but the seas may be stormy until vaccines prompt enough clients to book a cruise.