Macquarie has upped its price target on Royal Caribbean Group shares to $189 from $165.

The company said that Royal Caribbean’s “continued positive momentum” supports the higher price target.

“RCL delivered another quarter ahead of guidance and market expectations,” Macquarie wrote. “Progress on balance sheet improvement sees dividend reinstated.”

Macquarie noted a strong pricing and demand environment, with the cruise operator in a record booked position for 2024 at record pricing.

“RCL continues to go from strength to strength on product and demand, supporting ongoing deleveraging. RCL’s near- to medium-term outlook is still intact.”