Cruise Stocks Royal Caribbean, Carnival Catch Upgrades. Why It’s Time to Get Back on Board.

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Since peaking in July, Royal Caribbean is down 15%, Carnival has fallen 23%, and Norwegian is down 25%.

After two months of declines for cruise line stocks, it may be time for investors to get back on board.

Cruise stocks enjoyed a stellar first half of 2023 amid surging international travel demand as the sector’s post-Covid recovery finally started to ramp up. Carnival stock soared 134% in the first six months of the year, Royal Caribbean climbed 110%, and Norwegian Cruise Line Holdings gained 78%. Those recent losses are enough for the analysts to suggest getting back into the sector, particularly as they see “exceptionally strong” bookings and pricing trends for 2024 and 2025.

For Royal Caribbean, they increased their price target to $137 from $115, implying 43% upside to Monday’s closing price. Despite the new Hold rating, they still see Carnival as a relative underperformer but said the Sell rating was hard to defend as they think “rising tides will lift all boats.” They maintained a Hold rating on Norwegian Cruise Line stock.

 

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