London Daily

Focus on the big picture.
Monday, Sep 29, 2025

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 5 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
U.S. Defense Chief Orders Sudden Summit of Hundreds of Generals and Admirals
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
Trump Claims FBI Planted 274 Agents at Capitol Riot, Citing Unverified Reports
India: Internet Suspended in Bareilly Amid Communal Clashes Between Muslims and Hindus
Supreme Court Extends Freeze on Nearly $5 Billion in U.S. Foreign Aid at Trump’s Request
Archaeologists Recover Statues and Temples from 2,000-Year-Old Sunken City off Alexandria
China Deploys 2,000 Workers to Spain to Build Major EV Battery Factory, Raising European Dependence
Speed Takes Over: How Drive-Through Coffee Chains Are Rewriting U.S. Coffee Culture
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Ringo Starr Champions Enduring Beatles Legacy While Debuting Las Vegas Art Show
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Colombian President Petro Vows to Mobilize Volunteers for Gaza and Joins List of Fighters
FBI Removes Agents Who Kneeled at 2020 Protest, Citing Breach of Professional Conduct
Trump Alleges ‘Triple Sabotage’ at United Nations After Escalator and Teleprompter Failures
Shock in France: 5 Years in Prison for Former President Nicolas Sarkozy
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
BNP Paribas Abandons Ban on 'Controversial Weapons' Financing Amid Europe’s Defence Push
Typhoon Ragasa Leaves Trail of Destruction Across East Asia Before Making Landfall in China
The Personality Rights Challenge in India’s AI Era
Big Banks Rebuild in Hong Kong as Deal Volume Surges
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Arnault Denounces Proposed Wealth Tax as Threat to French Economy
Study Finds No Safe Level of Alcohol for Dementia Risk
Denmark Investigates Drone Incursion, Does Not Rule Out Russian Involvement
Lilly CEO Warns UK Is ‘Worst Country in Europe’ for Drug Prices, Pulls Back Investment
Nigel Farage Emerges as Central Force in British Politics with Reform UK Surge
Disney Reinstates ‘Jimmy Kimmel Live!’ after Six-Day Suspension over Charlie Kirk Comments
U.S. Prosecutors Move to Break Up Google’s Advertising Monopoly
Nvidia Pledges Up to $100 Billion Investment in OpenAI to Power Massive AI Data Center Build-Out
U.S. Signals ‘Large and Forceful’ Support for Argentina Amid Market Turmoil
Nvidia and Abu Dhabi’s TII Launch First AI-&-Robotics Lab in the Middle East
Vietnam Faces Up to $25 Billion Export Loss as U.S. Tariffs Bite
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Indonesia Court Upholds Military Law Amid Concerns Over Expanded Civilian Role
Larry Ellison, Michael Dell and Rupert Murdoch Join Trump-Backed Bid to Take Over TikTok
Trump and Musk Reunite Publicly for First Time Since Fallout at Kirk Memorial
Vietnam Closes 86 Million Untouched Bank Accounts Over Biometric ID Rules
Explosive Email Shows Sarah Ferguson Begged Forgiveness from Jeffrey Epstein After Taking His Money
Corrupt UK Politician Ed Davey Demands Elon Musk’s Arrest for Supporting Democracy
UK, Canada, and Australia Officially Recognise Palestine in Historic Shift
Alibaba Debuts Open-Source Deep Research Agent with Benchmarks Rivaling OpenAI
Marcos Faces Legacy-Defining Crisis as Flood Projects Scandal Sparks Massive Tide of Protests
China’s Micro-Drama Boom Turns Stalled Real Estate Projects into Lavish Film Sets
New Eye Drops Show Promise in Replacing Reading Glasses for Presbyopia
'Company Got 5,189 H-1B Visas, Then Laid Off 16,000 Americans': US Defends New $100,000 H-1B Visa Fee
Golf legend tells Omar she should be 'sent back to Somalia' after her Kirk comments
EU Set to Bar Big Tech from New Financial Data Access Scheme
China Bans Livestreaming and AI in Religion Amid Crackdown on Shaolin Temple Scandal
×