2022 is the year of cruise, Royal Caribbean 'top idea' - Stifel

Lindblad Expeditions Holdings

07/01/2022 15:07

** 2022 should be the year of all things cruise, Stifel
analyst Steve Wieczynski writes in a note, picking Royal
Caribbean Group  RCL.N  as its "top idea"
    ** RCL shares are up 3.2% at $80.42 in morning trading
    ** Wieczynski says cruise demand should be strong throughout
the most of 2022 despite cancellations and itinerary changes,
adding he does not see any scenario in which cruise operators
will have to materially dilute their shareholder base
    ** However, short-seller Hindenburg tweeted https://bit.ly/3t1LNaS
 on Thursday RCL's debt and liabilities will be extremely
difficult to service, and almost necessitating extensive
dilution of existing shareholders
    ** RCL did not respond to Reuters requests for comment
    ** Wieczynski also says going "all-in" with cruise-related
stocks is not the easiest call to make right now given the
current virus backdrop
    ** Still, the analyst says he would recommend any name that
is associated with the cruise industry, including Carnival
 CCL.N , Norwegian Cruise Line Holdings  NCLH.N , OneSpaWorld
Holdings  OSW.O  and Lindblad Expeditions Holdings  LIND.O 
    ** CCL, NCLH, OSW and LIND are up between 1% and 3%
    ** RCL shares gained last year, while NCLH and CCL declined
    
    

 (Reporting by Praveen Paramasivam)
 ((Praveen.Paramasivam@thomsonreuters.com;))