After a long port of call, it may be time for investors in cruise stocks to anchor, according to Citigroup. The cruise industry took a hit as countries closed borders and forced travelers to stay home during the COVID-19 lockdown. But the tide has shifted again as borders, increased demand and easing of testing requirements mean 2023 could mark a “banner year” for the industry, the Wall Street firm said. The backdrop is improving so much that analyst James Hardiman said in a note to clients on Monday that “cruise stocks as a group are graduating from ‘proxy trades’ to compelling longer-term investment narratives.” “Contrary to most of our coverage, the cruise space’s post-pandemic momentum clearly outweighs potential macro headwinds in 2023, with budding Asian and European narratives building in 2024,” Hardiman said. Hardiman’s reasoning for the sentiment shift stems from conversations with travel agents and web traffic trends that indicate strong demand. Some data points also suggest that 2023 sailings will likely exceed 2019 levels. Hardiman named Royal Caribbean his top choice, but Norwegian and Carnival also offer good upside. Royal Caribbean is a favorite for its solid track record of keeping costs down, and offers the best risk-reward opportunities within the group. “RCL remains our favorite name in the group, given the most compelling balance of pricing and cost control, while driving the least amount of earnings (debt and equity) forward from pandemic layoffs of fleets,” Hardiman wrote. ” After declining nearly 36% in 2022 so far this year, Royal Caribbean shares have gotten off to a solid start of more than 41%. Citi reinstated a price target on RCL shares at $80, a 19% upside from Wednesday’s close. Citi rates the stock as a High Risk Buy. Hardiman retained a neutral but high risk rating on Carnival, raising its price target to $13 per share from $9. This means an upside of about 15% from Wednesday’s close. He maintained the same rating and $18 price target on Norwegian. “Norwegian operates a highly regarded premium brand in the cruise space, and so we have no doubt that this customer base will do well to return as travel restrictions ease and virus concerns subside,” they wrote. — CNBC’s Michael Bloom contributed reporting