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BMO just handed Royal Caribbean the captain’s hat
BMO Capital Markets analyst Tristan M. Thomas-Martin started covering the cruise sector and came out swinging for Royal Caribbean. The stock got an Outperform rating and a $370 price target, with the analyst calling it the sector’s top pick.
Why the love? Royal Caribbean has apparently been doing the thing companies dream about: keeping existing customers inside its orbit while also pulling in new ones. BMO also likes where the story is headed next — more shore-based experiences and a push into the river cruise segment. Translation: the company isn’t just selling the same old boat ride and hoping for the best.
The rest of the fleet didn’t get the same glow-up
Carnival got a more cautious Market Perform call with a $30 target. The reasons read like a checklist of cruise-industry headaches:
- pressure in Europe
- possible weakness at the lower end of the consumer market
- heavy exposure to fuel costs without a hedging program
Viking, meanwhile, also got an Outperform rating and a $115 target, but with the classic premium-brand footnote: yes, it’s expensive, but maybe for a reason. BMO pointed to its affluent customer base and long-term growth in both river and ocean capacity.
Why investors should care
This wasn’t just a love letter to one stock — it was a read on the whole cruise trade. With fuel costs rising on Strait of Hormuz tensions, the market is trying to figure out which operators can keep cruising through the turbulence and which ones get seasick first.
Big picture: Royal Caribbean got the shiny new crown here, while Carnival got the side-eye. In cruise stocks, apparently even the buffet comes with a valuation debate.