Royal Caribbean Cruises (RCL) and Norwegian Cruise (NCLH) Should Outperform Despite Weak CCL Results - Nomura

Nomura/Instinet analyst Harry Curtis reiterated Buy ratings on Royal Caribbean Cruises (NYSE: RCL) and Norwegian Cruise Line (NYSE: NCLH) ahead of earnings. Expectations have dropped since CCL reported weak guidance two weeks ago but the analyst believes differences in consumer sourcing, vessels, and marketing programs will allow the two companies to perform at a higher level.

The analyst stated "Since CCL reported weak guidance two weeks ago, investors have once again
painted RCL & NCLH with the same brush, which, in our view, is misguided. RCL & NCLH’s advantages lie in their flexible global customer sourcing platform, unified corporate structure, and superior fleets. We believe both companies will deliver 3Q EPS at least in line with our estimates despite considerable headwinds from hurricane Dorian and lingering rebooking costs related to Cuba. More importantly, 4Q outlooks should be encouraging, as should commentary about 2020 bookings and pricing".

For an analyst ratings summary and ratings history on Royal Caribbean Cruises click here. For more ratings news on Royal Caribbean Cruises click here.

Shares of Royal Caribbean Cruises closed at $101.88 yesterday.

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