Norwegian Cruise Line (NYSE:NCLH) Raised to Buy at Freedom Broker

Key Points

• Freedom Broker upgraded Norwegian Cruise Line to “buy” from “hold” and raised its price target to $22 from $20, implying roughly 25% upside from the reported $17.55 share price.
• Analyst sentiment remains mixed: Wells Fargo also set a $22 target with an “overweight” rating, but the broader consensus is still “Hold” with an average target of $20.18.
• Norwegian reported quarterly earnings of $1.12 per share, beating estimates of $0.93, while revenue of $2.95 billion exceeded expectations of $2.88 billion; institutional investors own 69.58% of the stock.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) was upgraded by equities researchers at Freedom Broker from a "hold" rating to a "buy" rating in a note issued to investors on Friday, Benzinga reports. The firm currently has a $22.00 price objective on the stock, up from their prior price objective of $20.00. Freedom Broker's price objective points to a potential upside of 25.36% from the company's current price.

A number of other research firms also recently issued reports on NCLH. Wells Fargo & Company raised their price target on Norwegian Cruise Line from $18.00 to $22.00 and gave the stock an "overweight" rating in a research note on Friday. Zacks Research upgraded Norwegian Cruise Line from a "strong sell" rating to a "hold" rating in a research report on Friday, October 16th. Deutsche Bank Aktiengesellschaft set a $17.00 target price on Norwegian Cruise Line in a research report on Friday, July 31st. Morgan Stanley upped their price target on shares of Norwegian Cruise Line from $20.00 to $22.00 and gave the company an "equal weight" rating in a research report on Thursday, July 9th. Finally, BMO Capital Markets assumed coverage on shares of Norwegian Cruise Line in a research note on Tuesday, July 7th. They issued a "market perform" rating and a $21.00 price objective on the stock. One research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, sixteen have given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and a consensus target price of $20.18.

Norwegian Cruise Line Stock Performance

Shares of NYSE NCLH opened at $17.55 on Friday. The firm's 50-day moving average price is $15.39 and its 200-day moving average price is $18.75. Norwegian Cruise Line has a 52-week low of $13.63 and a 52-week high of $25.13. The company has a market cap of $8.06 billion, a PE ratio of 9.70, a PEG ratio of 1.01 and a beta of 1.99. The company has a quick ratio of 0.19, a current ratio of 0.22 and a debt-to-equity ratio of 4.43.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) last issued its quarterly earnings data on Thursday, October 29th. The company reported $1.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.93 by $0.19. Norwegian Cruise Line had a net margin of 8.20% and a return on equity of 34.28%. The company had revenue of $2.95 billion for the quarter, compared to the consensus estimate of $2.88 billion. During the same quarter in the prior year, the firm earned $1.20 earnings per share. The firm's revenue for the quarter was up .3% compared to the same quarter last year. As a group, analysts anticipate that Norwegian Cruise Line will post 1.36 EPS for the current year.

Hedge Funds Weigh In On Norwegian Cruise Line

A number of hedge funds have recently added to or reduced their stakes in NCLH. Elliott Investment Management L.P. bought a new stake in Norwegian Cruise Line during the 1st quarter valued at $246,578,000. Dimensional Fund Advisors LP raised its holdings in shares of Norwegian Cruise Line by 7.7% in the first quarter. Dimensional Fund Advisors LP now owns 7,262,590 shares of the company's stock valued at $135,776,000 after acquiring an additional 518,790 shares in the last quarter. Hound Partners LLC raised its holdings in shares of Norwegian Cruise Line by 50.0% in the first quarter. Hound Partners LLC now owns 5,713,090 shares of the company's stock valued at $106,835,000 after acquiring an additional 1,905,203 shares in the last quarter. California Public Employees Retirement System increased its position in Norwegian Cruise Line by 358.8% during the 1st quarter. California Public Employees Retirement System now owns 3,675,830 shares of the company's stock valued at $68,738,000 after purchasing an additional 2,874,730 shares during the period. Finally, Bank of America Corp DE raised its holdings in shares of Norwegian Cruise Line by 61.0% in the 1st quarter. Bank of America Corp DE now owns 2,566,087 shares of the company's stock valued at $47,986,000 after purchasing an additional 971,809 shares in the last quarter. 69.58% of the stock is currently owned by institutional investors.

Norwegian Cruise Line Company Profile

Norwegian Cruise Line Holdings Ltd. is a global cruise company headquartered in Miami, Florida. Through its operating brands—Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises—the company provides cruise vacations to destinations worldwide, including Europe, the Caribbean, Alaska, Asia, South America, Australia and New Zealand.

Norwegian Cruise Line offers contemporary cruises with flexible dining, entertainment and onboard activities. Oceania Cruises focuses on destination-oriented, upscale travel and culinary experiences, while Regent Seven Seas Cruises provides an all-inclusive luxury cruise experience.

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