Did Carnival, Royal Caribbean, and Norwegian Cruise Line Climb Too High, Too Soon?
There's some good news and bad news in the latest analyst update for cruise line stocks. The good news is that Chris Woronka at Deutsche Bank is boosting his price target for all three of the publicly traded players. The bad news is that his elevated price goals for shares of Norwegian Cruise Line Holdings (NYSE: NCLH), Carnival (NYSE: CCL) (NYSE: CUK), and Royal Caribbean (NYSE: RCL) are all well below what the market thinks the three companies are currently worth.
Not every price target increase is bullish. Not every price target decrease is bearish. A lot of times Wall Street pros are just scrambling to keep up with stocks after big moves higher or lower, and this is an industry in which all three cruise line operators have moved sharply higher since bottoming out between mid-March and early April. With a lot of stiff headwinds blowing in from the bow, Woronka is wondering the stocks have moved too high, too soon -- and he's not alone.
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Source Fool.com
