NEW YORK (TheStreet) -- Shares of Carnival Corp. (CCL) - Get Report are higher by 1.64% to $47.64 in early afternoon trading on Friday, as some cruise line stocks get a boost from comments about the Zika virus' impact on the sector from Nomura.
The Zika virus, a disease transmitted by the mosquito and believed to be the cause of thousands of birth defects Brazilian babies, has resulted in about an 8% decline in cruise stocks this week, Nomura said.
The firm feels that investor concern over the virus' impact on the sector is actually a good opportunity to "buy the lines."
"Zika will not have a meaningful impact on cruise vacation demand," Nomura said in a note.
"We expect Caribbean ports-of-call to aggressively spray for mosquitoes and cruise ships are already regularly treated for all types of pests," Nomura said.
Separately, TheStreet Ratings has set a "buy" rating and score of A on Carnival stock. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that TheStreet Ratings covers.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and good cash flow from operations. Although the company may harbor some minor weaknesses, TheStreet Ratings feels they are unlikely to have a significant impact on results.
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CCL