Norwegian Cruise Line’s Stock Price Will More Than Double, Says This Analyst

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Tigress Financial analyst Ivan Feinseth reiterated a Strong Buy rating on the shares of Norwegian Cruise Line Holdings Ltd (NYSE: NCLH) and announced a price target of $32.

The analyst thinks the cruise line operator is best positioned to benefit from the post-pandemic recovery and increasing consumer spending on travel and outperform its industry peers led by its premium product offering and best-in-class fleet in the highly profitable luxury and ultraluxury market segments.

Record revenue and profitability are on the horizon as strong booking and onboard spending trends will drive a significant recovery in Business Performance trends, he adds.

Revenue, Economic Operating Cash Flow (EBITDAR), and Net Operating Profit After Tax (NOPAT) should all exceed pre-pandemic record levels by mid-2023 as NCLH is both well-positioned to benefit from the post-pandemic recovery in travel combined with increasing consumer spending trends on travel.

Also, Norwegian Cruise Line is likelyto benefit further from additional higher-yielding and more profitable capacity from three recently launched new ships, along with three new ships coming in 2023.

Norwegian will increase its fleet by nearly 40% over the next five years, with nine high-tech and state-of-the-art new ships joining its fleet and increasingly contributing to revenue growth and profitability.

Feinseth notes pricing on 2023 itineraries is exceeding comparable 2019 levels by 20%, and booking levels are running 40% above 2019 levels with a 20% increase in capacity over 2019 levels.

While potential headwinds and investor skepticism exist, Norwegian’s smaller and younger fleet, projected fleet growth of its modern and unique ship designs, and high-quality product offering, better position it versus its peers.

Also ReadJim Cramer Says He Dislikes Carnival, Prefers This Cruise Ship Stock With ‘Better Balance Sheet’

Price Action: NCLH shares are trading higher by 2.18% at $14.54 on the last check Friday.

Photo Via Company

Latest Ratings for NCLH

Date

Firm

Action

From

To

Mar 2022

Macquarie

Maintains

Outperform

Feb 2022

Deutsche Bank

Maintains

Hold

Feb 2022

Morgan Stanley

Maintains

Underweight

View More Analyst Ratings for NCLH

View the Latest Analyst Ratings

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