Why Carnival, Royal Caribbean And Norwegian Cruise Line Shares Are Falling Today

Shares of cruise line stocks including Carnival Corporation & plc CCL, Royal Caribbean Cruises Ltd. RCL And Norwegian Cruise Line Holdings Ltd. NCLH are trading lower on Wednesday after Morgan Stanley lowered its price targets on the stocks.
 

Price Target Reductions: 

• Morgan Stanley maintained Carnival with an Underweight rating and lowered the price target from $17 to $13.
• Morgan Stanley maintained Norwegian Cruise Line with an Equal-Weight rating and lowered the price target from $18 to $14.
• Morgan Stanley maintained Royal Caribbean with an Underweight rating and lowered the price target from $59 to $54.

Morgan Stanley analyst Jamie Rollo noted 'We reduce our price targets to reflect weak channel checks, growing macro risks, and rising debt costs, all of which we think makes further equity raises more likely. We are holding our forecasts at this stage, having already cut 2022 sharply this year, but see growing risk to 2023.'

At the time of publication, Carnival was down 5.7% at $13 per share, Royal Caribbean was down 5% at $53.89 per share and Norwegian was down 4.9% at $15.11 per share.