By Liz Moyer
Investing.com — Cruise lines stocks are looking attractive according to Macquarie analysts, who upgraded the sector to outperform from neutral, citing positive catalysts.
With Covid cases dropping and vaccinations on the rise, the worst of the pandemic could be in the rear view mirror for cruise operators, wrote analyst Paul Golding. Cruises have been sidelined during the pandemic, but government restrictions could start lifting in the coming months. “While the risk of new variants could make a resumption choppy, vaccine modifications and lockdown fatigue could make these less impactful,” Golding wrote in a note.
Shares of Norwegian Cruise Line Holdings Ltd (NYSE:) rose 4.5% on Tuesday. Golding called it the best-positioned operator. It has “the most ships slated for sailings by this date relative to fleet size, but the latest avg. initial start date based on our proprietary itinerary dataset,” the note said. Golding rates it outperform and raised his price target to $40 from $18.
Carnival (NYSE:) Corporation (NYSE:) also traded up on Tuesday, gaining 4% in morning trading. Golding upgraded it to outperform from neutral with a $31 price target.
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