The Street Is Swimming In Sell-Side Cruise Line Coverage

A number of Street analysts released coverage on cruise line stocks Tuesday.

Macquarie is relatively cautious initiating coverage in an industry that just experienced a downgrade cycle and is susceptible to other industry downturns and reactive consumer behavior.

“Unless you expect a recession, or you think we are about to see a ship accident that scares away cruisers, we see little to be gained from short positions now,” said analyst Matthew Brooks, who also recommended limiting your portfolio to one cruise stock to limit risk.

Related Link: Royal Caribbean: Better Growth Than Carnival, Less Risky Than Norwegian

Royal Caribbean Cruises Ltd RCL – Macquarie’s top choice among cruise line stocks. Firm initiated coverage with an Outperform Rating and 12-month target of $88.

Carnival Corp CCL – Macquarie initiated coverage at Neutral and with a target of $55. “Safer play could lag in next upturn."

Norwegian Cruse Line Holdings Ltd. NCLH – Macquarie initiated coverage with a Neutral rating and a target of $42.

Elsewhere, Stifel reiterated a Buy Rating and $51 price target on Norwegian.

“Credibility will take time to restore but in the meantime management knows priority number one remains running the business to the best of their capabilities. If they do that, the stock price will take care of itself."

Norwegian shares are trading slightly up at $37.86; Royal Caribbean shares are slightly down at $74.54; Carnival shares are slightly down at $49.06.