Stifel raises Norwegian Cruise Line stock target to $36

Published 28/02/2025, 17:14
Stifel raises Norwegian Cruise Line stock target to $36

Friday - Stifel analysts have raised the price target on Norwegian Cruise Line Holdings (NYSE:NCLH) to $36.00, up from the previous $35.00, while maintaining a Buy rating on the stock. Currently trading at $23.33, the stock has shown strong momentum with a 32.6% gain over the past six months, according to InvestingPro data. The adjustment follows the company’s guidance indicating a positive performance outlook for the coming quarters.

Norwegian Cruise Line, according to Stifel, is expected to see a 4.5% increase in per diems over the last three quarters of 2025, outperforming its competitor Royal Caribbean (NYSE:RCL). The company has demonstrated solid performance with $9.48 billion in revenue and a gross profit margin of 40%. Despite these positive indicators, the stock has faced downward pressure, which Stifel attributes to investor concerns over lower forecasted load factors, modest first quarter guidance, and unenthusiastic booking commentary, particularly in the luxury segment. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, suggesting resilience despite these challenges.

Stifel’s analysis suggests that the current dip in Norwegian Cruise Line’s stock presents a significant buying opportunity. The firm believes that the initial guidance for 2025 has been set at achievable levels, potentially leading to multiple instances where the company could surpass expectations and adjust its guidance upward throughout the year. With a P/E ratio of 11.2 and analysts forecasting EPS of $2.41 for 2025, detailed financial analysis is available in the comprehensive Pro Research Report on InvestingPro, along with 8 additional key insights about the company’s prospects.

The research firm remains optimistic about Norwegian Cruise Line’s earnings potential, projecting that the company could generate earnings per share (EPS) exceeding $3 by 2026. This forecast is based on the company’s current guidance and performance metrics, which appear to position it favorably for future financial success.

As of today, Norwegian Cruise Line’s stock has not responded to the revised price target and maintained Buy rating from Stifel. The market’s reaction to these developments may unfold in the coming days as investors digest the implications of the updated guidance and Stifel’s analysis.

In other recent news, Norwegian Cruise Line Holdings Ltd reported a significant achievement in its fourth-quarter 2024 earnings, surpassing analysts’ expectations with an earnings per share (EPS) of $0.26, compared to the projected $0.11. The company’s revenue for the quarter was $2.1 billion, aligning with forecasts and demonstrating strong financial performance. Norwegian Cruise Line also achieved record revenue and net yield growth of 10% for the year, with an adjusted EBITDA reaching $2.45 billion, marking a notable improvement in profitability. Looking ahead, the company has projected a full-year net yield growth of 3% for 2025 and an adjusted EBITDA guidance of $2.72 billion. Analyst firms such as Goldman Sachs and Barclays (LON:BARC) participated in discussions, showing interest in the company’s strategic initiatives and financial outlook. Additionally, both S&P and Moody’s have upgraded Norwegian Cruise Line’s credit ratings, reflecting a positive outlook. The company continues to focus on strategic initiatives, including new ship launches and partnerships, which are expected to drive future growth.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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