Cruise stocks lose ground, Morgan Stanley flags slowdown risks

Shares of cruise operators fall after previous session's sharp gains

"Channel checks" from monthly panel of US travel agents suggest "sharp demand drop-off" for sector, Morgan Stanley analysts say

Comments show sharpest drop in cruise sentiment in three years, MS says, citing tariff concerns, the economic outlook, and indications of lower booking volumes

MS cuts net revenue yield assumptions for the sector by 50 basis points in 2025, cuts EPS forecasts for major cruise operators

Royal Caribbean Group RCL.N falls 6.9%; MS lowers EPS forecast by 5% and cuts price target to $220 from $270

Carnival Corp CCL.N falls 8.9%; MS cuts EPS forecast by 9%, trims PT to $21 from $25 but upgrades CCL to "equal-weight" from "underweight"

Norwegian Cruise Line Holdings NCLH.N falls 8.3%; MS cuts PT to $21 from $22

Viking Holdings VIK.N down 4.6%; MS cuts PT to $47 from $49

MS sees 40% further downside for cruise stocks if U.S. economy enters recession

Cruise stocks had jumped between 16.2% - 18.3% on Wednesday after U.S. President Donald Trump temporarily paused new tariffs

Stocks have lost between 0.6% and 8.9% YTD