Loop starts Carnival at Hold with demand recovery priced in

Loop Capital initiated coverage of Carnival (CCL) with a Hold rating and $225 price target The firm says that while it is favorably disposed to the entire cruise industry, it thinks a demand recovery and balance sheet improvement is already in the stocks of legacy cruise lines. The legacy stocks are at peak valuations, with adjusted EBITDA margins sustainably above peak, the analyst tells investors in a research note. Loop thinks the direction of the stocks in 2025 will be driven by whether there is a material demand slowdown, and it wants to wait until more cruise lines provide 2025 guidance to weigh in with more confidence.