While bullish on the cruise industry, Nomura Securities International has reduced its earnings estimates for Carnival Corporation and Royal Caribbean Cruises for 2102 and 2013 due to a weaker euro and higher fuel costs.

The financial firm pointed out that its lower estimates do not reflect deteriorating operating fundamentals.

The yield forecast for 2012 remains at a positive 2 percent, which, Nomura stated, offers a compelling upside, as long as the U.S. economy continues to expand.

Nomura’s price targets through the half of 2013 are $39 for Carnival, compared to $40 before, and maintained at $36 for Royal Caribbean, an upside of 19 percent and 44 percent on today’s share prices.

Carnival has announced its year-end and Q4 earnings call on Dec. 20.