Norwegian Cruise Line stock price target raised to $37 by Stifel

Investing.com - Stifel raised its price target on Norwegian Cruise Line Holdings (NYSE:NCLH) to $37.00 from $35.00 on Thursday, while maintaining a Buy rating on the cruise operator’s stock. Currently trading at $25.43, NCLH has shown strong momentum with a 35.48% gain over the past six months, according to InvestingPro data.

The investment firm cited Norwegian Cruise Line’s "massively undervalued" shares and identified multiple catalysts that could help the stock "materially appreciate" over the next six to twelve months. This view aligns with InvestingPro’s analysis, which shows NCLH trading at an attractive PEG ratio of 0.26, suggesting potential value relative to its growth prospects.

Stifel noted that NCLH currently trades at a 50% discount to industry leader Royal Caribbean, a gap the firm considers "extreme" and believes could narrow to around 20% if Norwegian continues to meet its 2026 financial targets.

The analyst raised 2026 and 2027 earnings per share estimates following what it described as "recent accretive capital market transactions" by the company.

The revised $37 price target, based on 13 times 2027 estimated earnings per share, represents approximately 50% upside potential for Norwegian Cruise Line stock.

In other recent news, Norwegian Cruise Line Holdings has been active with several financial transactions aimed at improving its financial structure. The company announced a $2.05 billion senior notes offering, which will be used to fund a tender offer and redeem existing notes. This move is part of a broader strategy to lower interest expenses and enhance cash flow. Additionally, Norwegian Cruise Line launched a registered direct offering of ordinary shares to repurchase a portion of its subsidiary’s exchangeable senior notes.

Analysts have weighed in on these developments, with Mizuho maintaining an Outperform rating and a $29.00 price target, highlighting the positive impact on the company’s balance sheet. Stifel also reiterated its Buy rating and a $35.00 price target, suggesting that the market may have misunderstood the implications of these capital transactions. Tigress Financial Partners raised its price target to $38.00, maintaining a Strong Buy rating, and emphasized the company’s strong cruise demand and operational improvements. These financial maneuvers and analyst insights reflect Norwegian Cruise Line’s ongoing efforts to optimize its financial health and strategic positioning in the market.

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