Cruise stocks have had a standout yr resulting from the post-pandemic demand surge the industry has been having fun with. That demand is predicted to proceed in 2024. Some 35.7 million passengers are expected to take a cruise next yr, up from 31.5 million in 2023 and 6% higher than 2019, in line with the Cruise Lines International Association. Meanwhile, shares of Royal Caribbean have jumped 140% up to now this yr and hit a 52-week high Thursday. Carnival is up about 120%, while Norwegian Cruise Line Holdings added 51%. Despite those massive runs higher , many Wall Street analysts are still bullish. After Royal Caribbean’s latest meeting with analysts over the weekend, as an example, several firms reiterated their buy rankings on the stock. “Following our time with management, we feel increasingly confident in RCL’s positioning as best-in-class operator of a few of the highest quality assets within the cruise industry,” Stifel analyst Steven Wieczynski wrote in a note Monday. His $135 price goal implies 14% upside from Wednesday’s close. Citi analyst James Hardiman called Royal Caribbean arguably the most effective company within the firm’s cruise coverage. “We expect RCL shares are favorably valued headed into an unpredictable 2024, and we like the corporate’s ability to complete out 2023 on a powerful note and put 2024 guidance in a spot that each satisfies investors initially and still positions the corporate to modestly exceed expectations going forward,” he wrote in a Monday note. RCL mountain 2020-01-01 Royal Caribbean’s performance since Jan. 1, 2020 The cruise industry was the last within the travel sector to get better from the Covid-19 pandemic resulting from shutdowns and restrictions. It was largely smooth sailing for cruise stocks this yr until late summer and fall, when the mixture of high oil prices, the disruption of Hawaiian travel resulting from the Maui wildfires and the Israel-Hamas war sent shares lower. As of late, oil prices are down, with U.S. crude falling below $70 a barrel Wednesday. Hawaiian cruises are back in business, while itineraries to Israel have been scuttled for now. Because the Oct. 31 close, shares of Carnival have rallied 55%, Royal Caribbean has gained 38% and Norwegian Cruise Line added 37%. Cruises even have a value advantage. While prices have been rising , cruises are about 25% to 30% cheaper than a land-based vacation, said Truist analyst Patrick Scholes. “If persons are searching for relative value, it continues to be a cruise,” he said. Black Friday into wave season Results from Black Friday/Cyber Monday sales also show positive momentum in bookings. The deals got here ahead of wave season, which starts after the vacations and continues into the tip of March. The time is normally marked by promotional deals. Last week, Carnival touted record bookings for its Princess , Holland America and Cunard lines through the Black Friday period. During its meeting with analysts, Royal Caribbean didn’t reveal details of the success of its Black Friday and Cyber Monday sales since it doesn’t provide intra-quarter updates, Deutsche Bank analyst Chris Woronka said. “Management did indicate that it was not surprised by reports of historically strong Black Friday bookings from industry peers,” he wrote in a Monday note. “In our view, RCL’s 4Q guidance and commentary on the 3Q earnings call encapsulates the corporate’s bullish expectations for 2024 bookings (inclusive of BF/Thanksgiving Week and ‘Early Wave’).” During that earnings call on Oct. 26, Royal Caribbean CEO Jason Liberty said demand for 2024 bookings continued to speed up, consistently outpacing 2019 levels by a “wide margin.” “This has resulted in a booked position that’s ahead of all prior years, at higher rates, further positioning us for one more yr of strong yield and earnings growth,” he said. Royal Caribbean is the favourite pick of Truist’s Scholes. He has a buy rating on the stock and a $134 price goal. Nevertheless, he noted that the stock has run much higher since he upgraded it in November. Royal Caribbean has a mean analyst rating of chubby and average price goal of $118.74, just barely higher from Wednesday’s close of $118.17, in line with FactSet. Analysts also like Carnival, which has a mean analyst rating of chubby, per FactSet. Its average price goal is $17.08, about 2% lower than Wednesday’s close. CCL mountain 2020-01-01 Carnival’s performance since Jan. 1, 2020 Last week, Melius Research upgraded shares of Carnival to purchase from hold, citing growing momentum in booking trends for the industry as one in all the explanations for the decision. Excess free money flow can be now available, said analyst Conor Cunningham. “With Josh Weinstein now one yr into his tenure as CEO there appears to be a heightened approach to maximizing returns and regaining their financial position inside the industry,” he wrote in a Nov. 27 note. “Management has actively managed the asset portfolio to higher allocate to areas where there will not be only a right away return but further upside through the years to come back.” Cunningham’s $19 price goal implies about 9% upside from the prior session’s close. Norwegian also has a mean analyst rating of chubby, but its average price goal of $16.76 suggests nearly 8% downside. NCLH mountain 2020-01-01 Norwegian Cruise Line’s performance since Jan. 1, 2020 Keep things in perspective The cruise stocks’ recent hit from global events underscores the risks investors may face, Truist’s Scholes cautioned. He can be fastidiously watching the recent moves higher. “We’re positive but we want to maintain it in perspective here,” he said. For the stocks to proceed to work, customer demand needs to stay strong, for one, Scholes noted. “You may’t have ongoing global events worsen or you may’t have surprise latest ones and you may’t have oil spike up again,” he said. — CNBC’s Michael Bloom contributed reporting.