BMO Research Today - July 8, 2026

Research evidence excerpt

BMO Research Today - July 8, 2026

Royal Caribbean Cruises

Tristan M. Thomas-Martin, Leisure Analyst - Cruise Lines

Initiating Coverage at Outperform: Cruising Towards the Next Wave of Upside

OP $287.78 $370.00 $77,180

Rating Price Target Mkt Cap.

• We are initiating coverage of Royal Caribbean Cruises (RCL) with an Outperform rating and a $370

target price.

• RCL is our top pick in the Cruise sector, having optimized cruise – both keeping cruisers in its

ecosystem and attracting new cruisers, and thinking about the next leg of the industry's growth via

an expanding portfolio of shore offerings and entrance into the river segment.

• Broader cruise industry tailwinds are favorable, war/oil headwinds are hopefully abating and

valuation isn't unreasonable even following a +12% move in the past month+.

Viking

Initiating Coverage at Outperform: Premium Positioning Meets Growth

OP $100.55 $115.00 $44,861

• We are initiating coverage of Viking Holdings (VIK) with an Outperform rating and a $115 target

price.

• Valuation is pricey, but we think you get what you pay for given VIK's position as a premium cruise

operator and resulting aspirational tailwinds, as well as its long-term growth algorithm of growing

capacity (River & Ocean) and yield expansion (MSD% target) supported by its affluent customer base

- which has been resilient recently in the face of macro headwinds.

ESTIMATES / TARGETS RAISED

Air Canada

Fadi Chamoun, Transportation Analyst - Transportation

Robust Demand and Easing Fuel Costs Support Higher Earnings and Target Price

OP $25.37 $30.00 $7,105

• Demand trends have generally continued to be robust and have helped weather a period of

extreme fuel price volatility.

• We are raising our estimates for FY26 to $3.4b EBITDA from $3.1b and expect Q2/26 EBITDA to come