Cruise stocks could be a profitable long-term investmentWill cruise stocks recover? The answer is a pretty resounding yes.” says Matthew Makowski, senior research analyst at Investment U10.
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Stock Price ForecastThe 15 analysts offering 12-month price forecasts for Royal Caribbean Cruises Ltd have a median target of 125.00, with a high estimate of 139.00 and a low estimate of 95.00. The median estimate represents a +44.03% increase from the last price of 86.79.
A full recovery in the stock isn't likely to happenBut given its debt burden and the significant increase in outstanding shares needed to keep it going during the pandemic, I don't see a path for that to happen. The share dilution will remain a headwind for a full recovery in the stock price.
Cruise passenger volume is forecast to reach 106% of 2019 levels in 2023—with 31.5 million passengers sailing. This compares to the UNWTO forecast t(January 2023) that international tourist arrivals in 2023 will be 80% to 95% of 2019 levels.
Revenue in the Cruises market is projected to reach US$25.14bn in 2023. Revenue is expected to show an annual growth rate (CAGR 2023-2027) of 9.29%, resulting in a projected market volume of US$35.87bn by 2027. In the Cruises market, the number of users is expected to amount to 32.53m users by 2027.
CLIA forecasts passenger numbers will not only meet but exceed pre-pandemic levels by the end of 2023. And according to Cruise Industry News' cruise ship orderbook for ocean-going vessels, nearly 40 new ships are lined up to debut this year alone, with more than 75 vessels on order through 2027.
Other cruise brands that have shut down over the past four years, almost all citing the financial effects of the pandemic, include luxury line Crystal Cruises and its two Asia-based sister brands, Dream Cruises and Star Cruises; Japan-based Venus Cruises; India-based Jalesh Cruises; Swedish-based Birka Cruises; U.S.- ...
Cruise giant Carnival was hit hard during the worst of the pandemic. Now, a top Wall Street analyst has issued a dire potential outlook for the company in the case of recession. Morgan Stanley's Jamie Rollo outlined a worse-case scenario: Carnival stock could fall to $0 in the event of a global economic downturn.