Analyst SIG believes the major US cruise lines will soon shrug off the effects of hurricane Irma and Harvey on their operations.
It is continuing to recommend buying the shares of Carnival, Royal Caribbean (RCCL) and NCL.
Hurricanes are one-time events, with Harvey being the first major hurricane (category 3+) to make landfall since Wilma in 2005," it said.
"They are beyond management’s control, and their effects don’t recur or last much beyond the actual event."
It estimates the storms will knock between 1.7% and 3.4% off earnings for 2017, with Carnival being the least impacted and NCL the most.
"We are talking about one-time cash flow losses in the $35m to $47m range," it added.
Cruise stocks have fallen 6.2% on average since just before Irma.
SIG said: "Since the lost earnings and cash flows are one-time in nature, the downside in shares should have been limited at most to the cumulative expected loss from the events.
"The cruise companies carry property and casualty insurance, but they do not carry business interruption insurance for the lost revenues and incremental expenses associated with the hurricanes."
Damage to the businesses should be limited to the extent to which people are less likely to book cruises, particularly to the Caribbean.
Its target price for Carnival is $75, against $65.57 now, while NCL's target is $66, compared to $55.12 currently.
RCCL has been given a target price of $134, versus $117.45 now.
