Macquarie analyst Paul Golding has reiterated their bullish stance on NCLH stock, giving a Buy rating today.
Paul Golding’s rating is based on Norwegian Cruise Line’s (NCLH) strong performance in the second quarter, which surpassed both guidance and market expectations. The positive trend in pricing and demand within the sector has led NCLH to increase its full-year guidance for the third time, demonstrating the company’s effective execution in a favorable market environment. This robust performance, paired with the company’s ability to achieve higher net yields and maintain costs, underpins Golding’s optimistic outlook and his decision to raise the target price for NCLH shares to $24.
Furthermore, NCLH’s financial position shows signs of improvement, with a notable decrease in net debt and an earlier-than-expected achievement of leverage goals. Bookings for future cruises are strong, indicating sustained demand and pricing growth, which is expected to continue into fiscal year 2024. Golding’s analysis also takes into account NCLH’s raised earnings guidance and the potential for a continued uptrend in earnings per share over the next two years. The valuation adjustment reflects a slight increase in the multiple applied to future earnings, with a positive outlook despite potential industry-wide risks such as fuel costs and geopolitical uncertainties.
In another report released today, Stifel Nicolaus also maintained a Buy rating on the stock with a $27.00 price target.
NCLH’s price has also changed slightly for the past six months – from $17.800 to $18.430, which is a 3.54% increase.
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Norwegian Cruise Line (NCLH) Company Description:
Norwegian Cruise Line Holdings Ltd. engages in cruise business. It provides cruise experiences for travelers with itineraries in North America, Mediterranean, Baltic, Central America, Bermuda and Caribbean. It also offers an entirely inter-island itinerary in Hawaii. Its brands include Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruses. The company was founded in 2010 and is headquartered in Miami, FL.
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Publish date : 2024-08-01 03:55:00
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