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Investing.com - UBS maintained its Neutral rating and $27.00 price target on Norwegian Cruise Line Holdings (NYSE:NCLH) following the cruise operator’s recent debt refinancing transactions. The stock, currently trading at $25.27, has shown remarkable strength with a 35.54% gain over the past six months. According to InvestingPro analysis, NCLH is currently trading above its Fair Value.
UBS analyst Robin Farley adjusted earnings estimates for Norwegian Cruise Line after the company completed a series of transactions this week, including refinanced debt and exchangeable notes offerings. With a total debt burden of $14.59 billion and a current ratio of 0.18, InvestingPro data reveals the company’s significant leverage position, highlighting the importance of these refinancing efforts.
The firm raised its 2026 earnings per share estimate by 6.4% to $2.47, with 5.4 percentage points of the increase attributed to accounting treatment changes for the new exchangeable notes, which affects diluted share calculations. The remaining 1% increase stems from lower interest expense.
UBS noted its 2027 EPS estimate remains mostly unchanged at $2.67 because the firm had already assumed Norwegian would settle its 2027 exchangeable notes with cash at maturity rather than exchanging them for shares.
Despite these financial adjustments, UBS maintained both its $27 price target and Neutral rating on Norwegian Cruise Line stock.
In other recent news, Norwegian Cruise Line Holdings has announced a significant financial move with plans to sell $2.05 billion in senior notes. This offering is aimed at managing existing debt, including a tender offer for notes due in 2026 and 2027, and redeeming notes due in 2029. Meanwhile, JPMorgan has added Norwegian Cruise Line to its U.S. Equity Analyst Focus List, setting a price target of $43 based on its estimated 2027 EBITDA, highlighting record booking trends as a positive catalyst. Stifel also raised its price target for the company to $37, maintaining a Buy rating and citing the stock as "massively undervalued." Despite these positive outlooks, Norwegian Cruise Line shares saw a decline following the announcement of financial transactions intended to improve cash flow and balance sheet flexibility. Mizuho continues to hold an Outperform rating with a $29 price target, supporting the company’s strategic debt moves. Stifel reiterated its Buy rating amid market reactions, suggesting a misinterpretation of the capital market transactions. These developments reflect ongoing strategic efforts by Norwegian Cruise Line to strengthen its financial position and enhance shareholder value.
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