Norwegian Cruise Line (NYSE:NCLH) Stock Gets Downgrade from JPMorgan Chase & Co.

Key Points

• JPMorgan downgraded Norwegian Cruise Line from “neutral” to “underweight” and set an $11 price target, implying approximately 29% downside from the stock’s $15.49 price.
• Analyst sentiment remains mixed but leans toward caution: NCLH has an average “Hold” rating and a consensus price target of $19.90, with 15 analysts rating it a hold compared with six buys and one sell.
• The company reported quarterly EPS of $0.48, exceeding estimates of $0.41, while revenue reached $2.64 billion. Institutional investors own 69.58% of the stock, with several major funds increasing their positions.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) was downgraded by JPMorgan Chase & Co. from a "neutral" rating to an "underweight" rating in a research report issued to clients and investors on Friday, Briefing.com reports. They presently have a $11.00 price target on the stock. JPMorgan Chase & Co.'s price target suggests a potential downside of 29.01% from the stock's current price.

Several other analysts have also recently commented on NCLH. Jefferies Financial Group increased their price target on shares of Norwegian Cruise Line from $16.00 to $18.00 and gave the company a "hold" rating in a research note on Friday, July 17th. Stifel Nicolaus dropped their price objective on shares of Norwegian Cruise Line from $26.00 to $25.00 and set a "buy" rating for the company in a research report on Friday, July 31st. Deutsche Bank Aktiengesellschaft set a $17.00 price objective on Norwegian Cruise Line in a report on Friday, July 31st. Wells Fargo & Company lowered their target price on Norwegian Cruise Line from $20.00 to $18.00 and set an "overweight" rating for the company in a research note on Monday, October 12th. Finally, Citigroup cut their price target on Norwegian Cruise Line from $22.00 to $19.00 and set a "buy" rating on the stock in a research note on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, fifteen have given a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, Norwegian Cruise Line has an average rating of "Hold" and a consensus price target of $19.90.

Norwegian Cruise Line Stock Down 0.6%

NYSE NCLH opened at $15.49 on Friday. The company has a debt-to-equity ratio of 5.40, a current ratio of 0.20 and a quick ratio of 0.17. The firm has a market cap of $7.11 billion, a PE ratio of 9.68, a price-to-earnings-growth ratio of 0.91 and a beta of 1.95. The stock's 50 day simple moving average is $15.52 and its 200 day simple moving average is $17.75. Norwegian Cruise Line has a one year low of $13.63 and a one year high of $25.13.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) last announced its earnings results on Thursday, July 30th. The company reported $0.48 EPS for the quarter, topping the consensus estimate of $0.41 by $0.07. The company had revenue of $2.64 billion for the quarter, compared to analysts' expectations of $2.65 billion. Norwegian Cruise Line had a return on equity of 41.38% and a net margin of 7.49%. The business's revenue for the quarter was up 4.9% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.51 earnings per share. Norwegian Cruise Line has set its Q3 2026 guidance at 0.900-0.900 EPS and its FY 2026 guidance at 1.500-1.500 EPS. As a group, sell-side analysts forecast that Norwegian Cruise Line will post 1.34 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Norwegian Cruise Line

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

About Norwegian Cruise Line

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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