Shares of Carnival and Norwegian Cruise Line rose after two Wall Street analysts issued sunnier outlooks for the industry.
Carnival stock climbed 14% to $14.95 in morning trading, on pace for its highest close since May of 2022 and largest one-day percent increase since Nov. 9, 2020, when positive data from Pfizer’s Covid vaccine sparked a rally in travel stocks. Over the past 12 months, Carnival shares are up almost 36%.
Norwegian Cruise Line climbed 9% to $18.79 in morning trading. Over the past 12 months, the stock is up about 43%.
Royal Caribbean Group rose 3.4%, bringing its gains from the past 12 months to about 106%.
Andrew Didora, a Bank of America analyst, on Monday upgraded Carnival to buy and upped his price target on the stock to $20 a share. He left his neutral ratings on Royal Caribbean and Norwegian unchanged, but raised his price target on the stocks.