(Updated to include Morgan Stanley's commentary)

Morgan Stanley lowered its price target on Royal Caribbean Group (RCL) to $280 from $310 after Mexico's Secretary of Environment and Natural Resources denied the approval of the cruise operatpr's environmental permit application for Perfect Day Mexico, its planned private destination at Costa Maya in Quintana Roo.

While noting that the company could eventually get approval or find a new site, the brokerage mentioned that the setback likely adds two years to the original 2028 first full year, and might impact yields until then on the new ships it plans to deploy to the Western Caribbean.

The cruise operator remains a best-in-class operator, but slowing yield/EPS momentum keeps them on the sidelines.

Royal Caribbean Group has an average rating of overweight and mean price target of $338.18, according to analysts polled by FactSet.

(MT Newswires covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www.mtnewswires.com/contact-us)

Price: 266.60, Change: +10.50, Percent Change: +4.10