The brokerage reduced its rating for CCL to 'underweight' from 'equal weight' and cut the stock's price target to $48 from $54.
In its agent survey, Morgan Stanley found softer pricing and increased promotions and agent incentives during August. Concerns about the impact of the Zika virus on bookings emerged, too.
Analyst Jamie Rollo also has concerns about the hefty cruise ship orderbook and the impact of capacity growth in China on pricing there.
Carnival shares fell 4.74%, closing at $46.39, down $2.31, while Royal Caribbean and Norwegian Cruise Line Holdings were off, as well.
RCL closed at $70.01, down $2.70, or 3.71%, while NCLH ended the session at $35.61, down $1.44, or 3.89%.
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