Royal Caribbean (NYSE:RCL), Norwegian Cruise Line Holdings (NYSE:NCLH), and Carnival Corp. (NYSE:CCL) are all increasingly compelling investments into 2023, according to Citi analyst James Hardiman.
“We believe cruise stocks as a group have graduated from ‘proxy trades’ to compelling long-term investment narratives, with both CCL (biggest turnaround/value opportunity) and NCLH (highest exposure to the premium consumer) offering compelling upside cases,” he wrote on Tuesday. “Unlike most of our coverage, the post-pandemic momentum of the cruise space clearly outweighs potential macro headwinds in 2023, with budding Asian and European narratives building into 2024.”
Hardiman selected Royal Caribbean (RCL) as his top pick, with upside for both Norwegian and Carnival Corp. now more pronounced. While he trimmed his EPS forecasts for the group, he nonetheless raised his price target on Carnival to a range between $9 and $13.
Read more on Hedgeye’s long call for Carnival.
Citi sees opportunity in cruise stocks
- Advertisment - 