Major cruise line stocks -- Carnival (CCL) - Get Report Royal Caribbean Cruises (RCL) - Get Report and Norwegian Cruise Line (NCLH) - Get Report -- fell Wednesday after the Centers for Disease Control and Prevention said the ban on U.S. cruises until Nov. 1 is still in place.
Carnival recently traded at $24.90, down 1.7%; Royal Caribbean at $83.25, down 0.8%; and Norwegian at $25.97, down 2.4%
Meanwhile, the Cruise Lines International Association, which represents 95% of global ocean-going cruise capacity, on Wednesday urged the CDC to allow a phased resumption of cruise operations from U.S. ports by July 1.
“The early-July timeframe is in line with President Biden’s forecast for when the U.S. will be ‘closer to normal,’” CLIA said in a statement.
“Over the past eight months, a highly controlled resumption of cruising has continued in Europe, Asia, and the South Pacific -- with nearly 400,000 passengers sailing to date in more than 10 major cruise markets,” the group’s president, Kelly Craighead, said.
“These voyages were successfully completed with industry-leading protocols that have effectively mitigated the spread of COVID-19.”
Last week, Carnival, Royal Caribbean and Norwegian received price-target increases from J.P. Morgan, based on the prospect of economic recovery from the coronavirus pandemic.
“We … raise our price targets on slightly higher target multiples driven by positively evolving expectations for potential pricing power,” J.P. Morgan analyst Brandt Montour wrote in a commentary.
Also last week, UBS raised its rating on Carnival to buy from neutral and more than doubled its target price to $42 from $20 on optimism about the company's long-term prospects.