Travel Stocks Soar as Cruise Lines Sail into Favor
The travel industry is finally shaking off the lingering effects of the pandemic, with cruise lines leading the charge. On Friday, JPMorgan lifted its price targets for Viking Cruises and Royal Caribbean, sending their stocks soaring.
Viking Cruises: A Cut Above the Rest
JPMorgan raised its price target on Viking Cruises to $58 from $50, citing the company’s superior pricing power and ability to deliver net yield growth ahead of its peers. Despite having nearly four times the capacity of its competitors, Viking has managed to maintain its edge. The firm also noted signs of strength in Viking’s core customer base, which has been echoed by rival cruise lines since the election.
Royal Caribbean: Optimizing for Success
JPMorgan also lifted its price target on Royal Caribbean to $295 from $253, citing the company’s focus on “optimizing” its booking curve for 2025. The firm sees potential for the company to beat Q4 estimates, driven by robust demand and a healthy start to its WAVE season. Argus Research also recently issued a bullish note on Royal Caribbean, citing strong advance booking trends and improving margin strength.
Cruise Line Stocks Surge
Viking Cruises shares surged 5.6% on Friday, briefly topping a 47.62 buy point. Royal Caribbean, Carnival, and Norwegian Cruise Line also powered above their 50-day moving averages, with gains of 4.2%, 3.8%, and 3.5%, respectively.
Travel Industry on the Mend
Airline stocks, cruise lines, and travel booking sites are finally recovering from the pandemic-induced slump. As capacity becomes a key question for 2025, investors are taking notice of the industry’s resurgence.
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