Royal Caribbean (NYSE:RCL), Carnival (NYSE:CCL) Valuations Raised by Wells Fargo (NYSE:WFC)

Wells Fargo (NYSE:WFC) increased their valuation ranges on Royal Caribbean Cruises (NYSE:RCL) and Carnival Corp. (NYSE:CCL), naming Royal Caribbean as a "Top Idea."

Wells said, "RCL's mix of newer class ships (Oasis, Solstice) and deployment should allow for - 200 bbps of net yield growth above the industry. Cost benefits from the newer class ships and operating cost discipline should drive EPS growth of 70%+/18%+, - $3.25/$3.50 in free cash flow/share..."

Wells Fargo raised its full year 2011 and full year 2012 EPS estimates on Royal Caribbean from $3.26 and $3.90 to $3.64 and $4.30.

For Carnival full year 2011 EPS estimate increased from $2.87 to $3.09 and the full year 2012 estimate moves from $3.28 to $3.48.

Concerning Carnival, Wells said that "recent 6 wks booking/pricing trends accelerating across all brands and geographic itineraries for Q111-Q311 and better constant currency costs reinforce our positive view."

Wells Fargo maintains an "Overweight" rating on both companies.

Caribbean Cruises last closed at $46.30, remaining level from its prior close. Wells raised their price target range on them from $49-$52 to $54 to $57 over the next 12 months.

Carnival Corp. last closed at $46.30, down $0.29, or 0.62 percent. Wells increased their price target range on them from $50 to $53 to $54 to $57.