Morgan Stanley Is Bearish on Carnival (CCL), Royal Caribbean (RCL)

Larry Ramer

Thu, Apr 10, 2025, 9:40 AM 2 min read

Morgan Stanley issued mostly bearish notes connected cruise operators Carnival Corporation (CCL) and Royal Caribbean Cruises (RCL). The concern slope upgraded CCL to Equal Weight but sharply chopped its terms people connected Royal Caribbean (RCL) and urged investors to debar the sector.

An aerial presumption of a luxurious cruise ship, surrounded by the bluish horizon.

Morgan Stanley's gloominess connected the cruise space's outlook contrasts with Stifel, which remains bullish connected RCL.

Morgan Stanley's Bearish Calls

Morgan Stanley upgraded CCL to Equal Weight from Underweight due to the fact that it believes that the name's risk/reward ratio has go much balanced aft its caller decline. However, the concern slope inactive recommends that investors debar the assemblage altogether if a recession materializes.

Specifically, Morgan Stanley is disquieted that the request for cruises volition driblet owed to the economy's struggles amid the tariffs that the Trump medication has imposed. The concern slope besides noted that its economist had reduced his forecast for U.S. GDP growth.

The concern slope chopped its terms people connected RCL to $220 from $270 but kept an Equal Weight standing connected the shares.

Stifel Is Bullish connected RCL

On April 8, Stifel lowered its terms people connected RCL to $265 from $310 but kept a Buy standing connected the shares. The concern slope identified RCL arsenic a "best-in-class" sanction that should alteration it to outperform its peers adjacent if the system deteriorates.

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