Why Cruise Line Stocks Dropped Today
Shares of cruise line stocks had a rough start to the week after a Wall Street analyst downgraded expectations because of the risk of a recession. Shares are trading lower for all of the major cruise lines despite the stock market rising slightly in morning trading.
As of 11:00 a.m. ET, Carnival Corporation (NYSE: CCL) is down 2.9%, Norwegian Cruise Line (NYSE: NCLH) is down 3%, and Royal Caribbean Cruises (NYSE: RCL) has fallen 3.5%. The stocks were down as much as 6.2%, 6%, and 6.8%, respectively.
The biggest news today was Stifel Nicolaus analyst Steven Wieczynski lowering earnings estimates and the price target for Carnival. Adjusted EBITDA expectations dropped from positive $103 million in 2022 to negative $244 million and, in 2023, fell from $5.0 billion to $4.16 billion. Wieczynski's stock price target was also reduced to $20 per share from $30.
Source Fool.com
