Cruise line stocks swung higher Monday after Truist raised its price targets on Royal Caribbean, Carnival Cruise and Norwegian Cruise Line Holdings based on the booking outlook for the industry.
The outlook for future cruise bookings and pricing continues to be highly encouraging, Truist analyst Patrick Scholes wrote in a Monday note, citing recent conversations with senior travel executives and an examination of "big data" across the industry, The Fly reported.
Scholes wrote that Norwegian Cruise Line Holdings is on track to at least meet the implied revenue forecast for its 2026 guidance from the company's recent investor day. Truist raised its price target on NCLH stock to 35 from 25 and kept a buy rating on the shares. The new target is 30% above where shares closed on Friday.
Meanwhile, Royal Caribbean has benefited from its greater emphasis on three- to four-day cruises. Travel executives have lauded about Royal Caribbean, with Scholes adding that travel executives "cannot say enough good things about this company." Royal Caribbean's strategic investments in new ships, private islands and planned beach clubs have also been extremely popular, the analyst wrote. Scholes hiked his price target on RCL stock to 272 from 204 and maintained a buy rating on the shares. The new target is 11% above where shares closed on Friday.
However, Truist wrote that the privately-owned MSC Cruises, a "value-priced" brand, continues to target Carnival Cruise Line's parent Carnival's customers on pricing. MSC has also been advertising heavily as it continues to break into the North American market. Despite the increase in competition, Scholes raised his price target on CCL stock to 29 from 20 but kept a hold rating on the shares.
The new target is 14% above where Carnival shares closed on Friday.
Royal Caribbean, Carnival Stock
RCL stock climbed about 1% Monday. Shares have rallied more than 90% so far this year and trading at record highs.
Norwegian's chart could be considered a shelf pattern, offering a possible entry for aggressive investors at 28.11.
Norwegian shares jumped5.4% Monday, clearing the early entry opportunity. NCLH stock is up 41.5% this year and trading at three-year highs.
Carnival stock swung 2.2% higher Monday, adding to its 40% gain so far this year. CCL stock is trading at its highest level since June 2021.
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