Bank of America raised its price target on a fleet of cruise ship stocks early Monday as the firm sees smoother tides ahead for the industry. Carnival stock received an upgrade to a buy rating. The note raised price forecasts for Royal Caribbean and Norwegian Cruise Line.
Carnival Stock Upgraded
Bank of America analyst Andrew Didora met with Carnival, Royal Caribbean and Norwegian Cruise Line representatives in Miami last week and came away from the meetings with more confidence in the industry, Didora wrote in a Monday research note. Industry demand remains steady, pricing environments are behaving well and booking trends are in-line with company expectations, Didora noted.
The analyst upgraded Carnival stock to a buy rating from neutral early Monday and raised the price target on CCL shares to 20 from 11. JPMorgan also upgraded Carnival stock to overweight from neutral on Monday and hiked the price target to 16 from 11.
Bank of America raised the price target on Royal Caribbean shares to 95 from 82 and boosted the outlook for Norwegian Cruise Line stock to 19 from 17.
Cruise Stocks
Carnival stock spiked 12.5% to 14.73 Monday following the upgrade, pushing CCL shares beyond the buy zone of a cup base after breaking out last Tuesday. The buy zone extends to 13.25.
Carnival stock vaulted nearly 83% so far this year.
Norwegian Cruise Line shares surged 7.2% Monday to surpass the 18.12 buy point for a cup base. NCLH stock rallied 50% year-to-date.
Royal Caribbean stock climbed 2.7% Monday following the analyst updates. RCL stock is trading in a profit-taking zone after rallying about 23% following its May 8 breakout from a cup base. Shares rocketed 89% in 2023.
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