Shares of Carnival and Norwegian Cruise Line experienced a boost on Thursday as an analyst from Redburn Atlantic upgraded the cruise lines, signaling an end to their pandemic woes.
Analyst Upgrade
In a significant development, analyst Alex Brignall upgraded shares of Carnival (ticker: CCL) and Norwegian Cruise Line Holdings (NCLH) from Neutral to Buy. The price targets for the stocks have been set at $23 and $25, respectively. These upgrades come as a result of a strong year for cruise stocks.
Tourism Demand Despite Economic Concerns
Despite concerns of rising inflation, high interest rates, and potential recession, consumer sentiment towards travel remains resilient. The eagerness to fulfill the pent-up desire for travel following Covid-19 lockdowns has been a major driver in boosting tourism demand.
Record-Breaking Performance
Carnival CEO Josh Weinstein reported that the company achieved all-time highs in bookings and customer deposits during the second quarter, demonstrating a remarkable performance. As a result, the stock has experienced a staggering 87% increase so far this year. Similarly, Norwegian CEO Harry Sommer mentioned a “healthy demand environment” for cruising, contributing to the stock’s impressive 34% growth in 2023.
As the cruise industry shows signs of recovery and strong growth prospects, investors are showing confidence in Carnival and Norwegian Cruise Line stocks.
Cruise Lines on the Road to Recovery
As the cruise line industry continues to recover, it showcases a promising outlook for both investors and travelers alike.
