Wells Fargo gave Carnival Corporation (CCL) an upgrade to an "Overweight" rating and a price target of $22 per share. Meanwhile, the firm downgraded Norwegian Cruise Line (NCLH) to a "Equal-Weight" rating and a price target of $18 per share.
Yahoo Finance reporter Madison Mills joins the Live show to break down the latest developments for these stocks and what it could mean for them going forward.
For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor's note: This article was written by Nicholas Jacobino
Video Transcript
- Let's take a look at shares of cruise liners, Carnival and Norwegian. A pair of analyst calls over at Wells Fargo on these names out this morning. Madison Mills live on the floor of the New York Stock Exchange with more on this. Maddie?
MADISON MILLS: Yeah. I was just looking. It looks like Carnival is the top performer in the S&P 500 so far today. Obviously, the market not open yet responding to that big jobs number from this morning. But so far, looking like a good day for a Carnival. That is after Wells Fargo raising this name to overweight with a $22 price target.
And the analysts, by the way, who did this upgrade has a really strong record. If we look at his returns, a 42% return for those who followed his recommendations in the past year. So pretty good news for him there. Having said that, some of my sources here at the stock exchange telling me that because of the amount of debt that Carnival has, this jobs number could be bad news for them. It could be a sign that the Federal Reserve is going to have to keep interest rates higher for longer, as we always say. And for a company that has a lot of debt on their balance sheet, that is not going to be good news for them.
Now, Wells Fargo saying that the fact that they are dealing with that debt finally is potentially a hedge against some of that interest rate news coming in today. I also quickly want to touch on Norwegian. Wells Fargo downgrading this name. A price target set to $18. That's a 2% move from the last price. I did also notice on the terminal that there is a sell, one single sell, on this name. And we never get to see a sell. So I was very excited about that guys.
Having said that, a little bit of a mixed picture here, 58% holds, 36% buys on Norwegian. But still not doing so well in terms of their performance today for that cruise line.
SEANA SMITH: Certainly not. And even over the last just five days alone, off just about 13%. All right. Maddie, thanks so much.
