Carnival (CCL) and Norwegian Cruise Line (NCLH) gave a positive read through on demand, which should support net yields into Q4, BofA Securities said in a Tuesday preview note.

The report said Carnival indicated booking momentum accelerated through the summer, contributing to a Q3 net yield

beat and an increase to its Q4 outlook.

For Norwegian Cruise Line, the note said it indicated that Q3 results are set to exceed guidance due to stronger revenues.

"This aligns with cruise spend data, which accelerated to high-teens growth from July-September vs high-single digits in May-June," the report said.

Additionally, Royal Caribbean (RCL) is poised for a net yield beat in Q3, with net cruise costs to decline 1.5%, at the better end of its guidance, the note said. Its Q3 results are due Oct. 27.

For Viking (VIK), the report said it is expected to show healthy demand, but faces cost pressure amid low water levels on the Danube and Rhine that have continued into early Q4.

BofA cut its price target on Norwegian Cruise Line to $17 from $21 and on Viking to $105 from $115 while keeping its neutral and buy ratings on the respective stocks. It reiterated its buy rating and $330 price target on Royal Caribbean.

Price: 26.52, Change: +0.04, Percent Change: +0.15