Cruise line sector seen as long-term survivor

Nomura Instinet takes the long view on the cruise line sector, saying it sees 70% to 90% three-year upside for $Royal Caribbean (RCL.US)$, $Norwegian Cruise (NCLH.US)$ and $Carnival (CCL.US)$. The view factors in that cruise demand will be impaired but not obliterated.
Analyst Harry Curtis forecasts a modest recovery beginning in the second half of this year with revenue down 70% in Q4 and 50% in Q1 of 2021. EPS is seen turning positive again in 2022. Perhaps most importantly, Curtis says bankruptcy risk is low for the cruise line operators based off analysis of cash flows and debt financing.