Are you curious about investing in cruise operators post-pandemic? Well, you’re in the right place! At Extreme Investor Network, we always strive to provide unique and valuable insights to help you make informed investment decisions.
According to UBS analyst Robin Farley, cruise operators are experiencing robust demand, and she believes the good times will continue. One key reason for this optimism is the still noticeable price gap between cruise prices and land-based hotel prices. As leisure travel demand grows and baby boomers retire, cruise lines are attracting a diverse range of customers, including millennials who are now entering the cruising age.
Farley points out that Royal Caribbean, Norwegian Cruise Line, Carnival, and the recently-public Viking have all seen increases in per diems, albeit slightly lagging behind hotel rates. Moreover, Melius Research is optimistic about the industry’s future, expecting continued margin expansion in the coming years.
UBS’ top pick in this space is Royal Caribbean, with a buy rating and a price target implying 9% upside potential. Farley also recommends Carnival and Viking as buy opportunities, with expected gains of 26% and 11%, respectively. However, she remains neutral on Norwegian due to balance sheet and execution challenges.
At Extreme Investor Network, we share in the bullish sentiment towards the cruise industry’s future growth potential. Whether you’re considering Royal Caribbean, Carnival, Viking, or Norwegian as potential investment opportunities, be sure to conduct thorough research and consider your risk tolerance before making any investment decisions. Stay tuned for more exclusive insights and analysis from Extreme Investor Network!