** Shares of cruise operators fall after previous session's sharp gains

** "Channel checks" from monthly panel of US travel agents suggest "sharp demand drop-off" for sector, Morgan Stanley analysts say

** Comments show sharpest drop in cruise sentiment in three years, MS says, citing tariff concerns, the economic outlook, and indications of lower booking volumes

** MS cuts net revenue yield assumptions for the sector by 50 basis points in 2025, cuts EPS forecasts for major cruise operators

** Royal Caribbean Group RCL.N falls 6.9%; MS lowers EPS forecast by 5% and cuts price target to $220 from $270

** Carnival Corp CCL.N falls 8.9%; MS cuts EPS forecast by 9%, trims PT to $21 from $25 but upgrades CCL to "equal-weight" from "underweight"

** Norwegian Cruise Line Holdings NCLH.N falls 8.3%; MS cuts PT to $21 from $22

** Viking Holdings VIK.N down 4.6%; MS cuts PT to $47 from $49

** MS sees 40% further downside for cruise stocks if U.S. economy enters recession

** Cruise stocks had jumped between 16.2% - 18.3% on Wednesday after U.S. President Donald Trump temporarily paused new tariffs

** Stocks have lost between 0.6% and 8.9% YTD

(Reporting by Lisa Mattackal )

((lisapauline.mattackal@thomsonreuters.com))