Cruise lines sailed higher Friday after JPMorgan lifted its price targets for Viking Cruises and Royal Caribbean. VIK stock jumped above a buy point while RCL, CCL and NCLH shares cleared key technical lines.
JPMorgan in a Friday research note raised its price target on Viking Cruises to 58 from 50 and kept an overweight rating on the shares after recent research and conversations with management. Viking's pricing power is greater than peers, the firm wrote, according to The Fly. Meanwhile, Viking has been able to deliver net yield growth ahead of the big three cruise lines, despite its capacity being nearly four times the average of its peers. In the near-term, JPMorgan sees signs of strength in Viking's core customer base, and those signs have been echoed by cruise rivals since the election.
Viking Cruises for its Q3 results in November reported that it sold 70% of its capacity passenger cruise days (PCDs) for the 2025 season, with 26% greater advanced bookings than 2024 at higher prices.
JPMorgan also noted cruise-line demand remains robust for Royal Caribbean, based on recent research. The firm noted that Royal Caribbean management is focused on "optimizing" its booking curve for 2025. JPMorgan sees potential to beat Q4 estimates and lifted its price target on Royal Caribbean to 295 from 253. The firm kept an overweight rating on the shares.
Argus posted a similar research note on Royal Caribbean at the beginning of the month, writing that the company continues to benefit from strong advance booking trends. The company had a healthy start to its WAVE season, which runs from Christmas through March. That suggests demand will result in greater-than-anticipated revenue and earnings. Argus will also watch for improving margin strength as Royal Caribbean is expected to launch new ships over the next 12 months.
Argus has a buy rating and a 280 price target for RCL stock.
Viking Cruises Stock
Viking Cruises shares popped 5.7% Friday, to close just above a 47.62 buy point for a seven-week flat base.
VIK stock hit a record high of 48.39 in the morning before easing slightly.
Viking Cruises has advanced more than 8% so far this year.
Royal Caribbean stock, Carnival and Norwegian Cruise Line powered above their 50-day moving averages as shares jumped.
RCL stock advanced 3.7% to work toward a 258.70 buy point for a flat base.
CCL stock gained 3.2% Friday and is closing in on a 27.16 entry for its flat base pattern.
NCLH stock, also trading in a flat base, climbed 2.8%. Norwegian Cruise Line stock has a 28.64 entry.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
