Exane starts cruise sector with three Outperforms, one Neutral

Exane BNP Paribas analyst Xian Siew initiated coverage of the cruise sector, placing Outperform ratings on Royal Caribbean (RCL), Carnival (CCL), and Viking Holdings (VIK) with price targets of $262, $26, and $47, respectively. The fir placed a Neutral rating and $21 price target on Norwegian Cruise Line (NCLH), saying the stock’s valuation, while attractive, could take time to recover amid macro concerns. Growth prospects for the cruise likes “are setting sail to new horizons,” supported by both secular tailwinds and company driven initiatives – including adding a land component to the seas with private islands, the analyst tells investors in a research note. Exane believes the group’s growth outlook remains favorable due to supportive demographics, as older consumers have time and money to cruise.