FINWIRES · TerminalLIVE
FINWIRES

Royal Caribbean, Norwegian Cruise Line to See Lower Net Yields in H2 Due to Iran Conflict, Morgan Stanley Says

By

Royal Caribbean (RCL) and Norwegian Cruise Line (NCLH) are poised to see lower net yields in H2 on account of bookings weakness owing to the ongoing Iran conflict, Morgan Stanley said in a Wednesday research note.

Morgan Stanley estimated a modest net yield beat in Q2 for Royal Caribbean, but lowered its estimates for Q3 and Q4 to 0.5% from 1% and to 4% from 4.5%, respectively. For Norwegian Cruise Line, Morgan Stanley said that the company's 400 basis point reduction to 2026 net yield guidance was "appropriately conservative," but lowered its estimate for Q4.

Additionally, Morgan Stanley said that travel backdrop continues to remain "solid", as evidenced by Bank of America card spending on cruises rising to 9.8% in June from 8.4% in May, with airline and hotel data spend showing strongest growth rates in over a year.

Viking (VIK) appears to be a standout, with the company more than 92% booked for 2026 making it largely immune from demand volatility, according to the note. Morgan Stanley estimated net yields of 5.6% and EBITDA of $714 million for Q2.

Morgan Stanley maintained its neutral rating on Royal Caribbean and Norwegian Cruise Line with price target of $310 and $22, respectively. For Viking, Morgan Stanley raised its price target to $115 from $97 and reiterated its buy rating.

Price: $294.86, Change: $+11.77, Percent Change: +4.16%

Related Articles

Wire

Rio Tinto Group's Q2 Update Shows Production in Line With Consensus, Says Jefferies

Rio Tinto Group (ASX:RIO) reported second quarter production exceeding expectations for Pilbara iron ore production and shipments, while performance across its other major operating assets was also broadly in line with market forecasts, according to a Wednesday Jefferies note.The investment firm added that the company has reduced unit cost guidance in copper to $0.30 to $0.50 per pound from $0.65 to $0.75 per pound due to higher gold prices and operational improvement initiatives."While mostly an uneventful report from Rio, the [quarter-on-quarter] rebound in volumes at certain assets in 2Q is encouraging," the investment firm said.Jefferies kept a hold rating on Rio Tinto with a price target of AU$187.The company's shares rose past 1% in recent Wednesday trade.

ASX:RIO
Wire

Copa Holdings Reports Higher June Passenger Capacity, Traffic

Copa Holdings (CPA) said its preliminary June passenger capacity, measured as available seat miles, increased 16% from a year earlier.Passenger traffic, measured as revenue passenger miles, rose 13%, the company said Tuesday in a statement.Copa shares gained 3.1% in after-hours trading.

$CPA
Wire

Phoenix Education Partners Fiscal Q3 Adjusted Earnings Fall, Revenue Rises; Shares Drop After Hours

Phoenix Education Partners (PXED) reported fiscal Q3 adjusted earnings late Tuesday of $1.43 per diluted share, down from $1.57 a year earlier.Analysts polled by FactSet expected $1.32.Revenue in the three months ended May 31 rose to $271.8 million from $271.7 million a year earlier. Analysts expected $271.2 million.Phoenix expects full-year net revenue of $1.02 billion to $1.025 billion. Analysts expect $1.026 billion.The company's shares fell 11% in after-hours trading.

$PXED