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Cruise stock pullback on Lutnick comments ‘massive overreaction,’ says Stifel

Cruise stock pullback on Lutnick comments ‘massive overreaction,’ says Stifel

Cruise related stocks are down an average of 9% this morning due to the comments made last night by incoming U.S. Secretary of Commerce, Howard Lutnick, in which he indicated the Trump Administration is interested in closing tax loopholes on certain corporations and industries that don’t pay material corporate income taxes, notes Stifel, adding that the cruise industry was specifically mentioned. However, the firm calls this “probably the tenth time in the last 15 years we have seen a politician talk about changing the tax structure of the cruise industry” and “each time it was presented, it didn’t get very far.” The pullback on Lutnick’s “misinformed” tax comments is a “massive overreaction,” the firm contends. Publicly traded cruiseline operators include Carnival (CCL), Norwegian Cruise Line (NCLH), Royal Caribbean (RCL) and Viking Holdings (VIK).

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