Norwegian Cruise Line's (NCLH, Financial) stock has been upgraded by Loop Capital from "Hold" to "Buy," while maintaining a price target of $25. This decision comes on the heels of a significant nearly 40% drop in the company's stock price since the start of the year.
Loop Capital highlights a positive outlook on the cruise industry as a whole, predicting that Norwegian Cruise Line could potentially expand its market share even if a recession occurs. This optimism follows the christening of Norwegian's first Prima Plus ship, Aqua, which promises a new era for the company’s fleet. The Aqua ship is 10% larger than Norwegian's Prima class vessels and is designed to host nearly 4,000 passengers.
The firm believes that this newly designed ship will be well-received by Norwegian Cruise Line's target market and provoke interest in elevated pricing compared to other ships in its fleet. Loop Capital's assessment suggests that these developments could bolster Norwegian's competitive position in the cruise industry.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 21 analysts, the average target price for Norwegian Cruise Line Holdings Ltd (NCLH, Financial) is $28.60 with a high estimate of $38.00 and a low estimate of $18.00. The average target implies an upside of 74.59% from the current price of $16.38. More detailed estimate data can be found on the Norwegian Cruise Line Holdings Ltd (NCLH) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Norwegian Cruise Line Holdings Ltd's (NCLH, Financial) average brokerage recommendation is currently 2.0, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Norwegian Cruise Line Holdings Ltd (NCLH, Financial) in one year is $25.02, suggesting a upside of 52.75% from the current price of $16.38. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Norwegian Cruise Line Holdings Ltd (NCLH) Summary page.
