James Hardiman explains why he’s bullish on the cruise lines

James Hardiman sees opportunity in the underperforming cruise space.
The Citi analyst explains the edge that Norwegian has over its peers.
He discussed his outlook on the cruise industry with CNBC's Kelly Evans.

COVID variants are unlikely to hurt cruise demand moving forward, at least in the U.S., says James Hardiman, who’s bullish on the underperforming sector.

Hardiman’s remarks on CNBC’s ‘Power Lunch’

Despite a recent rebound, cruise stocks are still down significantly from their highs before the pandemic. And that means “opportunity”, as per the Citi analyst. On CNBC’s “Power Lunch”, he noted:

Hardiman, however, clarified that even in the face of rising demand, cruise stocks will “take a while” to return to their pre-pandemic earnings power.

The edge that Norwegian has over its rivals

According to the Citi analyst, within the cruise space, Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) has an edge over its market peers. The stock is already up 40% since mid-March. Hardiman added:

In March, Norwegian raised a key fee applicable on all bookings made after April 1^st. The Cruise Line is expected to report its quarterly results early next month.