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July 13, 2020, 1:03 p.m. EDT

Carnival leads cruise stocks lower after Wedbush cuts price target amid resurgence in COVID cases

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By Tomi Kilgore

Shares of Carnival Corp. /zigman2/quotes/202325446/composite CCL +3.19% dropped 1.8% in midday trading Monday, to buck the surge in the broader stock market, amid concerns over how the recent surge in COVID-19 cases will affect the timeline for restarting cruises in the U.S. Analyst James Hardiman at Wedbush cut his price target to $20 from $29 while reiterating his neutral rating, in the wake of the cruise operator's announcements last week that three of its AIDA Cruises will start resailing in August, and that cumulative advance bookings for 2021 remained within historical ranges, although at lower prices. "While a legitimate target for the restart of the AIDA brand is encouraging, we can't help but think that we remain a far distance away from operations resuming in the United States given a resurgence in COVID-19 cases as well as halted (in some instances reversed) economic reopenings," Hardiman wrote in a note to clients. Other cruise stocks were also falling Monday, with Royal Caribbean Cruises Ltd.'s /zigman2/quotes/208854639/composite RCL +1.96% down 0.9% and Norwegian Cruise Line Holdings Ltd.'s /zigman2/quotes/204183397/composite NCLH -1.76% losing 1.7%. Over the past three months, Carnival's stock has rallied 38.1%, Royal shares have shot up 54.2% and Norwegian shares have soared 42.3%, while the S&P 500 /zigman2/quotes/210599714/realtime SPX +0.06% has gained 16.8%.

/zigman2/quotes/202325446/composite
US : U.S.: NYSE
$ 14.22
+0.44 +3.19%
Volume: 36.32M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$10.10 billion
Rev. per Employee
N/A
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/zigman2/quotes/208854639/composite
US : U.S.: NYSE
$ 52.10
+1.00 +1.96%
Volume: 8.40M
Aug. 7, 2020 4:03p
P/E Ratio
61.41
Dividend Yield
0.00%
Market Cap
$10.70 billion
Rev. per Employee
$123,297
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/zigman2/quotes/204183397/composite
US : U.S.: NYSE
$ 13.99
-0.25 -1.76%
Volume: 31.07M
Aug. 7, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.89 billion
Rev. per Employee
$182,383
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/zigman2/quotes/210599714/realtime
US : S&P US
3,351.28
+2.12 +0.06%
Volume: 2.28B
Aug. 7, 2020 5:10p
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