Skip to main content

Market Overview

A Pair Trade In Cruiselines: Carnival Upgraded, Norwegian Downgraded

A Pair Trade In Cruiselines: Carnival Upgraded, Norwegian Downgraded

Despite challenges in the cruiseline space, Carnival Corp (NYSE: CCL) has maintained or raised its net revenue yield growth guidance through the year, while Norwegian Cruise Line Holdings Ltd (NASDAQ: NCLH) has been dealing with structural limitations arising from its lack of global scale, Bernstein’s David Beckel said in a report.

Beckel upgraded the rating on Carnival from Market Perform to Outperform, while raising the price target from $52 to $63. He downgraded the rating on Norwegian from Outperform to Market perform, while reducing the price target from $45 to $43.

Importance Of Global Scale

“Relative to our views when we initiated coverage, we now place more importance on global scale as a competitive advantage. Scale allows Cruiselines to sell into multiple markets, reposition inventory more flexibly, and invest more adeptly in marketing initiatives and advanced revenue management systems, among other things,” Beckel explained.


Carnival's results and forward trends exhibit a “remarkable stability,” despite the tough operating environment. Carnival has recently announced several strategic initiatives, which could boost yields and drive incremental demand going forward, the analyst mentioned.

“We expect Carnival's multiple to expand through the issuance of stronger-than-expected FY17 guidance, the reveal of its new customer-facing technology at CES, and by consistently delivering on expectations throughout FY17,” the Bernstein report stated.


Beckel further mentioned that while Norwegian is poised to benefit from any positive industry dynamics, the recent run up in its share price leaves the risk/reward profile more balanced.

At Last Check

  • Carnival was up 0.09 percent at $51.81.
  • Norwegian was down 1.79 percent at $39.53.

Latest Ratings for CCL

Apr 2021Argus ResearchUpgradesHoldBuy
Apr 2021Credit SuisseUpgradesNeutralOutperform
Apr 2021CitigroupInitiates Coverage OnBuy

View More Analyst Ratings for CCL
View the Latest Analyst Ratings


Related Articles (CCL + NCLH)

View Comments and Join the Discussion!

Posted-In: Analyst Color Long Ideas Upgrades Downgrades Price Target Travel Analyst Ratings Movers Best of Benzinga

Latest Ratings

OSPNSidoti & Co.Upgrades39.0
PLTSidoti & Co.Upgrades48.0
LRCXArgus ResearchMaintains725.0
ROSTLoop CapitalMaintains145.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at