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Carnival Higher on Plan to Resume Alaska Cruises in July

Carnival's Princess Cruises line, Holland America Line and Carnival Cruise Line have made plans to depart from Seattle.
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Carnival  (CCL) - Get Carnival Corporation Report shares rose Friday as the company said it planned to resume cruises to Alaska in July and Truist Securities raised its price target on the stock.

The Princess Cruises, Holland America and Carnival Cruise lines have made the plans. Each will devote one ship to a round-trip from Seattle to Alaska, the company said.

The move was “based on recent guidance from the U.S. Centers for Disease Control and Prevention and close collaboration with Alaskan officials,” Carnival said.

“These Alaska cruises are available for guests who have received their final dose of an approved COVID-19 vaccine at least 14 days prior to the beginning of the cruise and have proof of vaccination. Crew vaccinations will be in accordance with CDC guidelines.”

As for Truist, analyst Charles Scholes lifted his price target on Carnival to $18 from $16. But he affirmed his sell rating.

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Carnival recently traded at $27.87, up 1.2%. It has advanced 58% over the past six months as investors expressed enthusiasm about the distribution of vaccines and the prospects for economic recovery.

Princess Cruises will resume Alaska cruises starting July 25, Holland America July 24 and Carnival Cruise July 27.

Carnival "and its brands continue to work with the CDC and other authorities on protocols and requirements for sailings out of U.S. ports,” the company said.

Carnival said last month that it would likely post a loss of around $2 billion for the quarter ended in February. But it noted improved bookings and cash balances.

Also in April, Credit Suisse upgraded Carnival to outperform from neutral and more than doubled its price target to $40 from $18.