NEW YORK (TheStreet) -- Carnival (CCL) shares are up 3.15% to $44.48 in trading on Wednesday as the cruise line gained after the U.S. government said it was moving to normalize diplomatic relations with Cuba.
President Obama held a press conference today saying that he instructed Secretary of State John Kerry to immediately begin discussions to reestablish relations with the country while also announcing plans to open an embassy there.
Investors are looking forward to Carnival and other cruise lines offering Cuban destinations now that it looks like the travel restrictions to the country will be lifted soon.
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"In addition, the U.S. will ease restrictions on remittances, travel and banking relations, and Cuba will release 53 Cuban prisoners identified as political prisoners by the U.S. government. Although the decades-old American embargo on Cuba will remain in place for now, the administration signaled that it would welcome a move by Congress to ease or lift it should lawmakers choose to," according to the New York Times.
TheStreet Ratings team rates CARNIVAL CORP/PLC (USA) as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CARNIVAL CORP/PLC (USA) (CCL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."