BofA Securities Cuts Price Targets Across the Cruise Line Industry CCL, NCLH and RCL

BofA Securities analyst Andrew Didora lowered the price target on Carnival Corporation (NYSE: CCL) to $18.00 (from $22.00) after the company priced $1.0B of unsecured 2030 notes at 10.5%. However, the need to refinance expands beyond the current company and across the industry leading him to cut the PTs for both Royal Caribbean (NYSE: RCL) and Norwegian Cruise Line (NYSE: NCLH) as well, to $57 and $20(from $70 and $25).

The analyst stated "We think this debt issuance at these levels of liquidity shows the refi needs of the cruise industry in the face of rising interest rates plus concerns around a spike in COVID cases (cruises still test). RCL has over $8.0B of maturities through 2023 compared to $1.8B for NCLH (inclusive of ship debt amortization), and we lower our target multiples to account for these added risks. "

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