Shares of Norwegian Cruise Line Holdings (NCLH) - Get Norwegian Cruise Line Holdings Ltd. Report dipped nearly 5% on Wednesday after an analyst at Buckingham Research downgraded his rating on the stock and slashed his one-year price target amid expectations the cruise company will suffer from recently imposed travel restrictions to Cuba.
Shares of Norwegian Cruise Line dropped 4.53%, or $2.46, to $51.80 after Buckingham Research analyst Daniel McKenzie downgraded the company to neutral from buy, and also slashed his 12-month price target on the stock to $56 from $77.
In a note to clients, McKenzie cited earnings growth risks related to travel restrictions to Cuba, specifically U.S. President Donald Trump's recent order to the U.S. State Department to ban cruise ships from going to Cuba because of the country's support of Venezuelan President Nicolas Maduro.
Treasury Secretary Steve Mnuchin said Tuesday that Cuba was playing a "destabilizing role in the Western Hemisphere, providing a communist foothold and propping up U.S. adversaries in places like Venezuela and Nicaragua by fomenting instability, undermining the rule of law and suppressing democratic process."
Shareholders of Royal Caribbean Cruises (RCL) - Get Royal Caribbean Cruises Ltd. Reportinitially shrugged off Tuesday's Cuba ban comments, with the stock ending the trading day higher. However, the shares slipped in Wednesday trading, dropping 2.81%, or $3.42, to $118.11 on the New York Stock Exchange.