Norwegian Cruise Line falls after Truist downgrade ahead of earnings
NCLH•Peers also weaker ahead of results
Shares of rivals Royal Caribbean (RCL.N) and Carnival (CCL.N) were also down about 2% amid broader market declines.
Royal Caribbean is due to report on Tuesday, while Norwegian Cruise Line is scheduled to report on Thursday.
Year to date through the last close, Norwegian Cruise Line was down about 13%, Carnival down 14%, and Royal Caribbean up about 2.5%.
Truist cuts Norwegian Cruise Line to hold
Shares of Norwegian Cruise Line (NCLH.N) fell as much as 3% to $18.75 after brokerage Truist downgraded the stock to hold from buy ahead of quarterly earnings next week.
Truist said it does not particularly like the setup at the moment for cruise stocks, noting fairly mediocre levels of underlying demand given macro pressures on the consumer. The brokerage also observed "unusually large" promotional activity, saying rivals may need to roll out promotions as well to compete, which could pressure the industry.
Truist cited hantavirus-driven booking softness in May through mid-June and said it sees limited upside as the stock nears its $20 price target.
