Why Carnival Corporation, Royal Caribbean, and Norwegian Cruise Line Stocks All Sped Ahead Today
Tuesday morning was looking like a rough day for cruise industry investors. Carnival Corporation (NYSE: CCL) (NYSE: CUK) had just announced a new $1 billion capital raise -- on top of $3.5 billion raised just two weeks ago -- highlighting the industry's need for cash and raising new worries that the recession might not end soon.
But then, a miracle happened.
In response to bullish news that Carnival rival Royal Caribbean (NYSE: RCL) has "seen a 30% increase in new bookings since the beginning of the year when compared to November and December" (according to its CFO, Jason Liberty), Deutsche Bank suddenly said it saw "many" reasons to be optimistic, and raised its price target on Royal Caribbean stock to $79 a share. Then J.P. Morgan agreed, raising its price target to $100. And all of a sudden, the cruise stocks turned around. Carnival, Royal Caribbean, and Norwegian Cruise Line Holdings (NYSE: NCLH), too, ended Tuesday on a high note.
Source Fool.com
