Set sail with these undervalued cruise lines

We see value in cruise companies as the market is unduly concerned about the impact of new ship deployments.

Jaime M. Katz, CFA 21 August, 2018 | 5:00PM

 

 

Jaime Katz: We continue to believe that long-term supply-side concerns surrounding new ship deployments in the cruise industry remain overblown. Rather, we believe demand-side growth should more than offset supply increases ahead, thanks to ongoing efforts to tap into new cruisers--which tend to become repeat cruisers. Through entry into new markets, like luxury--which Royal has pursued with its Silversea partnership--or millennials--with its refurbishment of the Mariner of the Seas--Royal has sought to tap into new demographic segments that can become lifetime loyalists to the brand.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Carnival Corp20.22 USD-2.51
Norwegian Cruise Line Holdings Ltd24.59 USD-1.60
Royal Caribbean Group71.96 USD-0.96

About Author

Jaime M. Katz, CFA

Jaime M. Katz, CFA  Jaime Katz, CFA, is a senior equity analyst for Morningstar.

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