Wells Fargo & Company Initiates Coverage on Norwegian Cruise Line (NYSE:NCLH)

Key Points

• Wells Fargo initiated coverage on Norwegian Cruise Line with an "overweight" rating and a $30 price target, implying roughly a 71% upside from the stock's current price.
• The analyst landscape is mixed but overall favorable: MarketBeat shows a consensus rating of "Moderate Buy" with a $28.37 consensus target, while individual targets range from about $21 to $38.
• Insiders bought shares (CEO purchased 25,000 shares) amid a quarter where NCLH reported $1.20 EPS (beat) and set FY2025 guidance of 2.10 EPS; the stock trades at a PE of 12.09 but carries high leverage (debt/equity ~8.05).

Analysts at Wells Fargo & Company initiated coverage on shares of Norwegian Cruise Line (NYSE:NCLH - Get Free Report) in a report released on Tuesday. The brokerage set an "overweight" rating and a $30.00 price target on the stock. Wells Fargo & Company's target price would suggest a potential upside of 71.09% from the stock's current price.

Several other research firms have also recently weighed in on NCLH. Tigress Financial increased their price target on Norwegian Cruise Line from $36.00 to $38.00 and gave the company a "strong-buy" rating in a report on Wednesday, August 27th. Susquehanna cut their price target on Norwegian Cruise Line from $25.00 to $21.00 and set a "neutral" rating for the company in a research note on Wednesday, November 12th. Truist Financial increased their price objective on shares of Norwegian Cruise Line from $27.00 to $31.00 and gave the stock a "buy" rating in a research note on Friday, September 19th. Stifel Nicolaus raised their price objective on shares of Norwegian Cruise Line from $35.00 to $37.00 and gave the stock a "buy" rating in a report on Thursday, September 11th. Finally, Barclays reduced their target price on shares of Norwegian Cruise Line from $31.00 to $28.00 and set an "overweight" rating for the company in a report on Wednesday, November 5th. Two investment analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $28.37.

Norwegian Cruise Line Stock Down 4.1%

Shares of NYSE NCLH opened at $17.54 on Tuesday. The company has a current ratio of 0.18, a quick ratio of 0.16 and a debt-to-equity ratio of 8.05. Norwegian Cruise Line has a 12 month low of $14.21 and a 12 month high of $29.29. The firm has a fifty day simple moving average of $23.07 and a two-hundred day simple moving average of $22.00. The firm has a market capitalization of $7.98 billion, a PE ratio of 12.09, a price-to-earnings-growth ratio of 0.71 and a beta of 2.22.

Norwegian Cruise Line (NYSE:NCLH - Get Free Report) last posted its quarterly earnings data on Tuesday, November 4th. The company reported $1.20 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.17 by $0.03. Norwegian Cruise Line had a return on equity of 59.88% and a net margin of 7.52%.The business had revenue of $2.94 billion during the quarter, compared to the consensus estimate of $3.03 billion. Norwegian Cruise Line has set its Q4 2025 guidance at 0.270-0.270 EPS. FY 2025 guidance at 2.100-2.100 EPS. Equities analysts expect that Norwegian Cruise Line will post 1.48 earnings per share for the current year.

Insider Activity at Norwegian Cruise Line

In related news, CEO Harry Sommer bought 25,000 shares of the stock in a transaction dated Thursday, November 6th. The shares were purchased at an average price of $18.52 per share, with a total value of $463,000.00. Following the completion of the acquisition, the chief executive officer owned 720,728 shares of the company's stock, valued at $13,347,882.56. This represents a 3.59% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Harry C. Curtis acquired 5,000 shares of the company's stock in a transaction on Friday, November 7th. The shares were bought at an average cost of $19.25 per share, with a total value of $96,250.00. Following the acquisition, the director directly owned 50,325 shares in the company, valued at approximately $968,756.25. The trade was a 11.03% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have purchased 90,029 shares of company stock worth $1,663,575 in the last 90 days. Insiders own 0.41% of the company's stock.

Institutional Investors Weigh In On Norwegian Cruise Line

Institutional investors have recently made changes to their positions in the company. CWM LLC boosted its holdings in shares of Norwegian Cruise Line by 4.0% in the first quarter. CWM LLC now owns 22,650 shares of the company's stock valued at $429,000 after purchasing an additional 865 shares during the period. Wealthfront Advisers LLC raised its holdings in Norwegian Cruise Line by 23.8% in the first quarter. Wealthfront Advisers LLC now owns 17,208 shares of the company's stock worth $326,000 after purchasing an additional 3,308 shares in the last quarter. Victory Capital Management Inc. lifted its position in Norwegian Cruise Line by 1.6% during the first quarter. Victory Capital Management Inc. now owns 1,328,308 shares of the company's stock valued at $25,185,000 after acquiring an additional 20,849 shares during the last quarter. Private Advisor Group LLC boosted its holdings in Norwegian Cruise Line by 8.5% in the first quarter. Private Advisor Group LLC now owns 26,192 shares of the company's stock worth $497,000 after acquiring an additional 2,056 shares in the last quarter. Finally, Kestra Private Wealth Services LLC boosted its stake in Norwegian Cruise Line by 20.5% in the 1st quarter. Kestra Private Wealth Services LLC now owns 55,741 shares of the company's stock worth $1,057,000 after purchasing an additional 9,479 shares in the last quarter. Institutional investors own 69.58% of the company's stock.

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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