JPMorgan recently initiated coverage of the cruise line industry with mixed ratings. Analyst Matthew Boss praised Royal Caribbean Cruises (NYSE:RCL) as a top operator and gave it a Buy rating. He mentioned its leading net promoter scores, attractive destination offerings like Perfect Day at Cococay, and impressive cost management. Boss assigned a $94 price target for RCL, using a 10x multiple of their FY24 EBITDA estimate.
On the other hand, Carnival (NYSE:CCL) and Norwegian Cruise Line Holdings (NYSE:NCLH) received Hold ratings, with JPMorgan citing balanced risk/reward ratios for both. Boss acknowledged Carnival’s various improvements and the potential for better brand clarity and pricing power. He assigned an $11 price target for CCL, based on around 8x the FY24 EBITDA estimate. For NCLH, the company’s focus on high-end consumers was noted, but it remains a “Show Me” story in terms of cost management. JPMorgan established a $15 price target for NCLH, using roughly 8x the FY24 EBITDA estimate.
Overall, Wall Street analysts have consensus price targets of $85.10, $11.95, and $15.55 on RCL, CCL, and NCLH stocks, respectively. This implies upside potential of over 32%, 30%, and 18%, as indicated by the graphic above.