Stifel maintains buy rating on Norwegian Cruise Line stock

On Thursday, Stifel analysts reiterated their Buy rating on Norwegian Cruise Line (NYSE:NCLH) Holdings stock, maintaining a price target of $26.00, well above the current trading price of $18.40. The analysts shared their insights following the company’s presentation at Stifel’s annual Cross Sector Insight Conference. According to InvestingPro data, analyst targets for NCLH range from $17 to $36, with a consensus recommendation leaning towards Buy.

During the conference, Norwegian Cruise Line’s CFO Mark Kempa and IR representative Sarah Inmon expressed optimism about the company’s current booking trends. The analysts noted that demand seemed to have improved in May, with a stable macroeconomic environment contributing to healthy demand levels. This optimism is supported by the company’s recent financial performance, with revenue reaching $9.4 billion in the last twelve months.

Despite facing pressure on third-quarter 2025 load factors due to European market softness, Norwegian Cruise Line is focusing on maintaining pricing rather than increasing load factors. The analysts commended this approach, suggesting it could benefit the company in the long term. InvestingPro data reveals the company maintains a healthy gross profit margin of 40.5%, though it operates with significant debt obligations.

The analysts also mentioned that current consensus estimates for Norwegian Cruise Line appear reasonable. They indicated that if the demand remains steady, there might be potential upside to the company’s 2025 guidance.

Norwegian Cruise Line Holdings, traded on the New York Stock Exchange under the ticker NCLH, remains a focal point for investors interested in the cruise sector.

In other recent news, Norwegian Cruise Line Holdings reported its first-quarter earnings for 2025, missing analysts’ expectations on both earnings per share (EPS) and revenue. The company posted an adjusted EPS of $0.07, falling short of the anticipated $0.09, while revenue reached $2.13 billion, slightly below the forecasted $2.15 billion. Despite these challenges, Norwegian Cruise Line exceeded its adjusted EBITDA guidance with a reported $453 million. Analyst firms have reacted to these developments with adjustments to price targets. BofA Securities lowered its price target for Norwegian Cruise Line to $20, maintaining a Neutral rating due to booking volatility and a softening forward booked position. Goldman Sachs also reduced its price target from $20 to $18 but continues to recommend buying the stock, noting challenges in the luxury segment and occupancy reductions. These recent developments highlight the mixed performance and cautious outlook for Norwegian Cruise Line amidst broader industry challenges.

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