Norwegian Cruise Line (NYSE:NCLH) Stock Price Expected to Rise, Morgan Stanley Analyst Says

Key Points

• Morgan Stanley has raised its target price for Norwegian Cruise Line (NCLH) from $24.00 to $26.00, indicating a potential upside of 4.43% from the stock's previous close.
• Other brokerages, including Barclays and Bank of America, have also increased their price targets for NCLH, reflecting positive sentiment for the stock with an average target price now at $27.20.
• Norwegian Cruise Line reported earnings of $0.51 per share for the last quarter, slightly missing analysts' expectations, but marked a revenue increase of 6.1% year-over-year.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) had its target price raised by equities researchers at Morgan Stanley from $24.00 to $26.00 in a note issued to investors on Monday,Benzinga reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's price target points to a potential upside of 4.43% from the stock's previous close.

A number of other brokerages have also commented on NCLH. Barclays boosted their price target on shares of Norwegian Cruise Line from $25.00 to $31.00 and gave the company an "overweight" rating in a research note on Friday. Bank of America boosted their price target on shares of Norwegian Cruise Line from $20.00 to $27.00 and gave the company a "neutral" rating in a research note on Wednesday, July 23rd. Susquehanna boosted their price target on shares of Norwegian Cruise Line from $18.00 to $25.00 and gave the company a "neutral" rating in a research note on Friday. Truist Financial reduced their target price on shares of Norwegian Cruise Line from $35.00 to $27.00 and set a "buy" rating for the company in a research note on Monday, May 19th. Finally, Argus reiterated a "hold" rating on shares of Norwegian Cruise Line in a research note on Wednesday, June 18th. Nine investment analysts have rated the stock with a hold rating, twelve have issued a buy rating and two have issued a strong buy rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $27.20.

Norwegian Cruise Line Trading Up 1.6%

NYSE:NCLH traded up $0.40 during mid-day trading on Monday, hitting $24.90. 5,683,319 shares of the company's stock were exchanged, compared to its average volume of 14,214,497. The firm has a market capitalization of $11.12 billion, a P/E ratio of 17.17, a PEG ratio of 1.02 and a beta of 2.24. Norwegian Cruise Line has a fifty-two week low of $14.21 and a fifty-two week high of $29.29. The company has a current ratio of 0.18, a quick ratio of 0.16 and a debt-to-equity ratio of 8.05. The company has a 50 day simple moving average of $20.77 and a 200-day simple moving average of $20.90.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) last issued its quarterly earnings results on Thursday, July 31st. The company reported $0.51 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.52 by ($0.01). Norwegian Cruise Line had a return on equity of 59.88% and a net margin of 7.52%. The firm had revenue of $2.52 billion during the quarter, compared to analyst estimates of $2.55 billion. During the same quarter last year, the firm posted $0.40 EPS. The firm's revenue for the quarter was up 6.1% on a year-over-year basis. As a group, research analysts expect that Norwegian Cruise Line will post 1.48 earnings per share for the current year.

Institutional Investors Weigh In On Norwegian Cruise Line

Several institutional investors have recently added to or reduced their stakes in NCLH. Capital International Investors lifted its holdings in shares of Norwegian Cruise Line by 11.2% in the fourth quarter. Capital International Investors now owns 55,194,672 shares of the company's stock worth $1,420,159,000 after buying an additional 5,557,951 shares in the last quarter. Ariel Investments LLC lifted its holdings in shares of Norwegian Cruise Line by 126.8% in the first quarter. Ariel Investments LLC now owns 9,081,170 shares of the company's stock worth $172,179,000 after buying an additional 5,077,531 shares in the last quarter. Two Sigma Advisers LP lifted its holdings in shares of Norwegian Cruise Line by 99.0% in the fourth quarter. Two Sigma Advisers LP now owns 7,689,200 shares of the company's stock worth $197,843,000 after buying an additional 3,824,600 shares in the last quarter. 59 North Capital Management LP purchased a new stake in shares of Norwegian Cruise Line in the first quarter worth about $69,877,000. Finally, Voloridge Investment Management LLC lifted its holdings in shares of Norwegian Cruise Line by 3,403.3% in the fourth quarter. Voloridge Investment Management LLC now owns 3,374,576 shares of the company's stock worth $86,828,000 after buying an additional 3,278,249 shares in the last quarter. 69.58% of the stock is owned by hedge funds and other institutional investors.

About Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd., together with its subsidiaries, operates as a cruise company in North America, Europe, the Asia-Pacific, and internationally. The company operates through the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands. It offers itineraries ranging from three days to a 180-days calling on various ports, including Scandinavia, Northern Europe, the Mediterranean, the Greek Isles, Alaska, Canada and New England, Hawaii, Asia, Tahiti and the South Pacific, Australia and New Zealand, Africa, India, South America, the Panama Canal, and the Caribbean.

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