Why Carnival Corp Stock Is Getting Clipped Today

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Carnival Corp (NYSE:CCL) started off its Tuesday on the wrong note as the company was warned about a potentially tough road ahead for cruise stocks by analysts.

Carnival CorpMorgan Stanley (NYSE:MS) warned a number of major cruise line operators that there may be coming weakness in the industry over the coming quarters, with Carnival being affected the most, falling by its highest drip since May 2017.

The report was written by analysts and led by Jamie Rollo, consisting of a survey of U.S. travel agents, who found that after an “unusually strong” May, many believe that the third and fourth quarter in the Caribbean will be a cause for concern for cruise operators. This is due to fears of tropical storms, hurricanes and a surplus of capacity.

Morgan Stanley added in its note that overall pricing is flat and some top retailers are worried about a general slowdown coming in the fourth quarter.  “The Caribbean remains the main market to watch out for,” Rollo said, cutting the price target of Carnival. “We remain relatively cautious on the cruise lines given the high and increasing level of industry supply growth, slowing yield momentum, and weakness in the Caribbean and China.”

CCL stock took a hit on the news Tuesday, declining nearly 4.4% by the day’s mid-afternoon.


Article printed from InvestorPlace Media, https://investorplace.com/2018/06/carnival-corp-ccl-2/.

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