Hudson Securities Initiates RCL At Buy, $4.16 PT

Hudson Securities is initiating coverage of Royal Caribbean Cruises (NYSE: RCL) with a Buy rating and a 12-month target price of $58, “which is based on 14x our 2012 EPS estimate $4.16,” the financial institution reports.

“RCL is the second largest global cruise industry player. Its 40 ships and 5 brands represent about one-quarter of global capacity behind industry leader Carnival, who controls about half of global capacity,” Hudson Securities writes. “RCL generates lower net yields and is a less efficient operator relative to CCL, but it is making strides to close the gap. It has 2 new ships on order, which represents about 12% of the industry's order book.”

Royal Caribbean Cruises closed Thursday at $47.81.