Goldman Sachs Sets Price Target for Norwegian Cruise Line Holdings (NYSE:NCLH)

Loop Capital upgraded Norwegian Cruise Line (NYSE:NCLH) to Buy from Hold, holding its price target steady at $25. The firm points to a compelling entry point after a roughly 40% drop in the stock year-to-date, noting the shares now trade at an attractive discount based on discounted cash flow valuations.

Analysts are broadly optimistic about the cruise sector, viewing it as well-positioned to gain market share even in a downturn. Norwegian’s pricing—typically around 30% lower than comparable land-based vacations—adds to its recession-resistant appeal.

The upgrade also follows a recent christening voyage of Norwegian’s newest ship, Aqua, part of its first Prima Plus class. The ship is 10% larger than its predecessors and expected to accommodate nearly 4,000 guests. Its modern design is seen as a strong fit for Norwegian’s core customer base and could command premium pricing relative to the rest of the fleet.

Further supporting the long-term growth narrative, Norwegian is making strategic investments in its private island destination, Great Stirrup Cay, including a new pier and additional amenities aimed at enhancing the guest experience.

Loop Capital upgraded Norwegian Cruise Line (NYSE:NCLH) to Buy from Hold, holding its price target steady at $25. The firm points to a compelling entry point after a roughly 40% drop in the stock year-to-date, noting the shares now trade at an attractive discount based on discounted cash flow valuations.

Analysts are broadly optimistic about the cruise sector, viewing it as well-positioned to gain market share even in a downturn. Norwegian’s pricing—typically around 30% lower than comparable land-based vacations—adds to its recession-resistant appeal.

The upgrade also follows a recent christening voyage of Norwegian’s newest ship, Aqua, part of its first Prima Plus class. The ship is 10% larger than its predecessors and expected to accommodate nearly 4,000 guests. Its modern design is seen as a strong fit for Norwegian’s core customer base and could command premium pricing relative to the rest of the fleet.

Further supporting the long-term growth narrative, Norwegian is making strategic investments in its private island destination, Great Stirrup Cay, including a new pier and additional amenities aimed at enhancing the guest experience.

Norwegian Cruise Line (NYSE:NCLH) posted stronger-than-expected fourth-quarter earnings, as higher onboard spending fueled a jump in net yield.

The cruise operator reported adjusted earnings per share of $0.26, more than double the $0.11 analysts had forecast. Revenue for the quarter reached $2.1 billion, aligning with expectations. The company’s net yield—a key measure of profitability—jumped 9% year-over-year, beating prior guidance by 210 basis points, thanks to robust guest spending on board.

The company highlighted 2024 as a year of strategic transformation, with record-breaking revenue, strong net yield growth, and a rise in adjusted EBITDA.

For the full year 2025, Norwegian Cruise Line anticipates adjusted earnings per share of $2.05, slightly below Wall Street's estimate of $2.09. The company projects adjusted net income of approximately $1.07 billion and an 11% rise in adjusted EBITDA to $2.72 billion. Norwegian expects net yield to grow 3% on a constant currency basis, a more moderate pace compared to last year's surge.

Norwegian Cruise Line (NYSE:NCLH) posted stronger-than-expected fourth-quarter earnings, as higher onboard spending fueled a jump in net yield.

The cruise operator reported adjusted earnings per share of $0.26, more than double the $0.11 analysts had forecast. Revenue for the quarter reached $2.1 billion, aligning with expectations. The company’s net yield—a key measure of profitability—jumped 9% year-over-year, beating prior guidance by 210 basis points, thanks to robust guest spending on board.

The company highlighted 2024 as a year of strategic transformation, with record-breaking revenue, strong net yield growth, and a rise in adjusted EBITDA.

For the full year 2025, Norwegian Cruise Line anticipates adjusted earnings per share of $2.05, slightly below Wall Street's estimate of $2.09. The company projects adjusted net income of approximately $1.07 billion and an 11% rise in adjusted EBITDA to $2.72 billion. Norwegian expects net yield to grow 3% on a constant currency basis, a more moderate pace compared to last year's surge.

• Lizzie Dove from Goldman Sachs has set a price target of $34 for Norwegian Cruise Line Holdings (NYSE:NCLH), indicating a potential upside of about 28.69%.
• The company is experiencing positive growth due to strong demand in the cruise industry, supported by a positive pricing environment and robust booking momentum.
• With plans for fleet expansion and strong pricing power, Norwegian Cruise Line Holdings shows a promising outlook for growth.

On January 23, 2025, Lizzie Dove from Goldman Sachs set a price target of $34 for Norwegian Cruise Line Holdings (NYSE:NCLH). At the time, the stock was trading at $26.42, suggesting a potential upside of about 28.69%. Norwegian Cruise Line Holdings operates 32 ships across three brands and competes with Carnival Corp. and Royal Caribbean.

Norwegian Cruise Line Holdings is experiencing positive growth due to strong demand in the cruise industry. The company benefits from a surging global demand for cruises, supported by a positive pricing environment and robust booking momentum. This growth is reflected in the stock's recent performance, with a slight increase of 0.61% to $26.42.

The company's strong pricing power and high occupancy rates are key factors driving its growth. Norwegian Cruise Line Holdings plans for fleet expansion, which further supports its positive outlook. The stock has fluctuated between $25.84 and $26.51 today, with a market capitalization of approximately $11.62 billion.

Over the past year, the stock has reached a high of $28.64 and a low of $14.69. This range indicates the stock's volatility and potential for growth. The trading volume of 5,103,614 shares shows active investor interest, aligning with the positive sentiment highlighted by Lizzie Dove's price target.

• Morgan Stanley maintains an "Underweight" rating for NYSE:NCLH, with a raised price target to $19 from $17.50.
• Strong third-quarter performance expected for NCLH, driven by robust consumer demand and effective pricing strategies.
• The current stock price of NCLH is $24, with a slight decrease of 0.46% or $0.11.

Norwegian Cruise Line Holdings (NYSE:NCLH) is a prominent player in the cruise industry, offering a range of travel experiences across its fleet. The company competes with other major cruise lines like Carnival Corporation and Royal Caribbean. On October 30, 2024, Morgan Stanley maintained its "Underweight" rating for NCLH, with the stock trading at around $23.95. Despite this, Morgan Stanley raised its price target to $19 from $17.50.

NCLH is expected to report strong third-quarter performance in 2024, driven by robust consumer demand and effective pricing strategies. This positive outlook has investors contemplating whether to invest in the stock before the earnings release. The current stock price is $24, reflecting a slight decrease of 0.46% or $0.11.

Today, NCLH's stock has fluctuated between $23.42 and $24.09. Over the past year, it has seen a high of $24.80 and a low of $12.71. The company's market capitalization stands at approximately $10.55 billion, indicating its significant presence in the market.

The trading volume for NCLH on the NYSE is 3,981,018 shares, suggesting active investor interest. As the company prepares to release its earnings, the market will closely watch how these factors influence the stock's performance.