London Daily

Focus on the big picture.
Tuesday, Jun 23, 2026

Why Royal Caribbean, Carnival, and Norwegian Cruise Line Stocks Are Still Rocking

Why Royal Caribbean, Carnival, and Norwegian Cruise Line Stocks Are Still Rocking

Yesterday, a better-than-expected revenue report out of Royal Caribbean (NYSE:RCL) sparked a rally across the cruise line sector. The momentum is carrying into this afternoon, with Royal Caribbean shares gaining another 4.3% through 12:15 p.m. EDT, Carnival Corporation (NYSE:CCL) lagging just a bit with a 3.6% gain, and Norwegian Cruise Line Holdings (NASDAQ:NCLH) up a solid 6%.
So what


And yet, at the same time that individual investors appear to be getting more optimistic about cruise stocks, the professionals are turning conservative. In today's news, two of Wall Street's biggest names cut their price targets on Royal Caribbean.

Saying Royal Caribbean has "ample" access to capital and is likely to at least begin a "gradual" return to service before the year is out, reports TheFly.com, investment bank Stifel Nicolaus is maintaining its buy rating on Royal Caribbean shares. Stifel furthermore notes (according to StreetInsider.com) that it's hoping to see a COVID-19 vaccine begin distribution in the first quarter 2021, which could accelerate a recovery. Nevertheless, the analyst has reduced its price target from $85 a share to just $72 a share.

Investment megabanker JPMorgan is also cutting its price target on the stock, from $72 to just $67. Contradicting Stifel's optimism, JP warns that the cruise industry's recovery could be slower than previously forecast -- making Royal Caribbean shares in particular worth less than the analyst previously thought.

Now what


Granted, JPMorgan likewise believes Royal Caribbean stock will outperform the market, and continues to recommend the shares for this reason. But there seems to be reason for caution here, as even these optimistic analysts' price target cuts imply.

Already, the past two weeks have seen two of the three major publicly traded cruise lines warn that they are burning through cash at rates higher than earlier anticipated. Norwegian Cruise Line Holdings is now burning $160 million a month, and Royal Caribbean anywhere from $250 million to $290 million. Given the trend, I wouldn't be surprised if Carnival, too, reports accelerated cash burn in its next update.

Even assuming "ample" liquidity, burning more cash in the middle of a recession is not a good thing. Not to put too fine a point on it, but it's a reason for these stocks to be trading down, not up.

10 Top Stocks we like better than Royal Caribbean Cruises Ltd.

When investing geniuses David and Tom Gardner have a stock tip, it can literally pay to listen. After all, they have consistently beaten the market for over 25 years!

David and Tom just revealed what they believe are their ten Top Stocks for investors to buy right now… and Royal Caribbean Cruises Ltd. wasn't one of them! That's right -- they think these 10 stocks may be even better buys.

Comments

Oh ya 6 year ago
Ya they are doing great with months of empty ships. This is a pump and dump. The cruise companies still have 12000 staff floating around out there they can't get home because ports are closed. So buy stock and watch your money sink

Newsletter

Related Articles

0:00
0:00
Close
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
Lloyds Banking Group Expands Artificial Intelligence Hiring Amid Sector-Wide Automation Shift
Film Producer Corporate Collapse Leaves Creditors Facing Unrecoverable Losses
UK Ten-Year Brexit Anniversary Highlights Ongoing Political and Economic Uncertainty
Nottingham Maternity Scandal Inquiry Reveals Systemic Failings in NHS Care
Met Office Heatwave Prompts Public Health Warnings Across United Kingdom
Concerns Rise Over Fiscal Stability as Political Uncertainty Weighs on UK Borrowing Costs
UK Taxpayers Back Higher Digital Taxes on Global Technology Firms, Survey Shows
Bank of England Holds Interest Rates Steady Amid Persistent Services Inflation
Reform UK and Opposition Leaders Call for General Election Following Starmer’s Departure
Ten Years After Brexit Referendum, UK Faces Ongoing Political Fragmentation and Economic Debate
Nottingham University Hospitals Maternity Inquiry Exposes Severe NHS Failures
Met Office Issues Heat Health Alerts as United Kingdom Faces Record-Breaking Temperatures
Andy Burnham Emerges as Front-Runner for Labour Leadership After Starmer’s Resignation
Keir Starmer Resigns as UK Enters New Phase of Political Leadership Transition
UK Expands Alcohol Ban Enforcement Using Tagging Technology Ahead of World Cup
UK Invests £50 Million in Critical Minerals Supply Chain Security
UK Appoints Special Envoy on Preventing Sexual Violence in Conflict
UK Introduces Fines for Landlords of Unsafe Rental Properties
Reform UK Leads Opinion Polls as Immigration Debate Reshapes UK Politics
Police Investigate Edinburgh Attacks as Potential Hate Crimes
King Charles to Publish Personal Tax and Royal Household Financial Records
Nottingham University Hospitals Maternity Inquiry Report Set for Publication
Heat-Health Alerts Issued Across London and Southern England Amid Rising Temperatures
UK Economy Shows Pressure From Middle East Conflict Despite Modest Growth
Brexit Anniversary Reignites Debate Over UK Economic and Political Direction
UK Parliament Continues Legislative Work Amid Leadership Transition
Financial Markets Hold Steady After UK Leadership Shake-Up
Andy Burnham Enters Labour Leadership Race With Strong Parliamentary Backing
Keir Starmer Resigns as UK Prime Minister After Two Years in Office
Reform UK MP Lee Anderson to Raise Pension Concerns Over British Coal Staff Superannuation Scheme
UK Parliament to Debate Newborn Screening for Spinal Muscular Atrophy Following Public Petition
Met Office Warns of Water Safety Risks During Heatwave as Temperatures Peak in England
Treasury Increases Mileage Allowance Payments for 2026–27 Tax Year to 55 Pence Per Mile
UK Government Raises Electricity Generator Levy to 55 Percent in New Revenue Measure
House of Lords Moves Financial Services and Markets Bill to Committee Stage Amid Regulatory Scrutiny
Westminster Hall to Debate Petition on Pro-Israel Influence in UK Politics
UK Parliament Prepares for Estimates Days Debates as Backbench Business Schedule Approved
Armed Forces Bill Nears Final Stages in UK House of Commons With Military Justice Reforms
Donald Trump Comments on UK Political Situation, Citing Immigration and Energy Policy Concerns
Andy Burnham By-Election Victory Fuels Speculation Over Potential Labour Leadership Contest
UK Economy Shows Resilience but Faces Headwinds from Middle East Tensions, UK Finance Says
UK Parliament Opens Week of Debates on Net Zero, Security and Armed Forces Reform
Met Office Issues Amber Extreme Heat Warning as Temperatures Expected to Reach 35C Across England and Wales
Prime Minister Keir Starmer Faces Mounting Leadership Pressure After Makerfield By-Election Defeat
London Hotel Wins World’s Best Afternoon Tea Award at International Hospitality Guide La Liste
Court of Appeal Rules in Favour of Competition and Markets Authority in Phenytoin Drug Case
Chichester Waste Site Suspended After Environment Agency Finds Serious Fire and Pollution Risks
UK Appoints Chris Elmore as Special Envoy on Preventing Sexual Violence in Conflict
×