Royal Caribbean Cruises up after Deutsche Bank upgrades stock to 'buy'

By Reuters News

** Shares of Royal Caribbean Cruises RCL.N up ~1% at $245.70 premarket

** Brokerage Deutsche Bank upgrades stock to "buy" from "hold", saying its 26% decline since August 5 makes the risk/reward more attractive at current levels

** Attributes recent weakness to higher oil prices and investor concerns about the sustainability of yield growth amid Norwegian Cruise Line's NCLH.N 2027 booking strategy and planned Caribbean capacity growth

** Adds that RCL is investing $3 billion in a joint venture that will give it a 50% stake in Sandals Resorts; says investors initially appeared skeptical of the deal, but believes the economics are attractive

** Says a favorable reaction in Carnival Corp's CCL.N shares following the results on September 29 could also support RCL

** 22 of 29 brokerages rate the stock "buy" or higher, seven "hold"; their median PT is $346.50

** Up to last day's close, stock down about 13% YTD

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