What's Going On With Cruise Stocks As Category 4 Hurricane Beryl Churns In the Caribbean?

Shares of cruise line stocks, including Carnival Corporation CCL, Royal Caribbean Cruises Ltd. RCL and Norwegian Cruise Line Holdings Ltd. NCLH, shares are trading lower Monday as Category 4 Hurricane Beryl churns in the Caribbean.

The Details:

Hurricane Beryl strengthened to a Category 4 storm and made landfall in the Grenadines' Carriacou Island in the Caribbean Sea with maximum sustained winds of 150 mph Monday.

According to a report from The Weather Channel, Beryl is expected to take a general west-northwest track in the Caribbean Sea through the rest of the week. The National Hurricane Center has issued a hurricane watch for Jamaica and a tropical storm watch remains in effect for the south coast of Haiti and southwest coast of the Dominican Republic.

Hurricane season can be troublesome for cruise lines due to the higher potential for re-routing and even cancellations. Forecasters have predicted this hurricane season to be very active due to unusually warm ocean temperatures. 

Carnival recently reported better-than-expected second-quarter results and saw a slew of analysts increase price targets on the stock following the print. Shares of other cruise lines moved higher in sympathy as investors celebrated consumers' return to spending on travel and experiences. 

"Bookings and pricing momentum are firing on all cylinders and accelerating into 2025," noted Goldman Sachs analyst Lizzie Dove.  

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CCL Stock Prediction 2024:

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Carnival have an average 1-year price target of $22, representing an expected upside of 25.53%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Carnival, while 7 analysts have bullish ratings. The street high price target from Argus Research is $25, while the street low from Truist Securities is $17.

CCL, RCL, NCLH Price Action: According to Benzinga Pro, Carnival shares are down 5.93% at $17.61, Royal Caribbean shares are down 2.64% at $155.22 and Norwegian Cruise Line shares are down 6.6% at $17.56 at the time of publication Monday.

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