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Norwegian Cruise Line Holdings Ltd. (NCLH), headquartered in Miami, Florida, offers cruise travel services for passengers across the globe. With a market cap of $7.44 billion, it is one of the leading cruise operators in the world, providing an extensive array of itineraries and destinations through its fleet of modern ships. Norwegian Cruise Line Holdings caters to diverse travelers, offering unique onboard experiences and exceptional service.
Shares of NCLH have underperformed the broader market considerably over the past year. NCLH has declined 16.3% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 19%. In 2024 alone, the stock has lost 16.3%, compared to SPX's 14.2% gains on a YTD basis.
Zooming in further, NCLH’s YTD loss is much higher than the Defiance Hotel, Airline, and Cruise ETF (CRUZ). The exchange-traded fund has declined about 5.8% over this period.
NCLH stock declined more than 5% yesterday after the company released its Q2 earnings report on Jul. 31. The company reported earnings of $163.40 million, or $0.40 per share, surpassing Wall Street expectations of $0.34 per share. Revenues of $2.37 billion matched the consensus estimate. For the full year, NCLH expects adjusted earnings per share of $1.53.
For the current fiscal year, ending in December, analysts expect NCLH to report EPS growth of 178.6% to $1.17 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.
Among the 17 analysts covering NCLH stock, the consensus rating is a “Moderate Buy.” That’s based on seven “Strong Buy” ratings, nine “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago, with three analysts suggesting a “Strong Buy.”
On Aug. 1, Stifel Nicolaus analyst Steven Wieczynski maintained a ‘Buy’ rating on Norwegian Cruise with a price target of $27, implying a potential upside of 55.6% from current levels.
The mean price target of $21.85 represents a 25.9% premium to NCLH’s current price levels. The Street-high price target of $32 suggests an ambitious upside potential of 84.4%.
On the date of publication, Rashmi Kumari did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
