Is Norwegian Cruise Line Stock Still A Buy After Rallying 20% Over The Last Month?

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• Is Norwegian Cruise Line Stock Still A Buy After Rallying 20% Over The Last Month?
• President Biden’s Plan To Change Credit Reporting And Scoring
• Premium Investing Services
• About MarketBeat
• Industry Products
• Travel Services Industry Comparables
• Norwegian Cruise Line (NCLH) Makes a Big Splash After Earnings
• Dive into Norwegian Cruise Line Holdings

The bottom line exceeded analyst targets, building on its return to profitability in the second quarter after more than three years of quarterly losses. While Norwegian is likely to start cruises from the U.S. around early August, it says that it now plans to operate 23 of its 28 ships through early 2022. Moreover, the company said that it would begin cruising to Alaska from early August following the passage of the U.S.

Is Norwegian Cruise Line Stock Still A Buy After Rallying 20% Over The Last Month?

Longer-term profitability also remains a concern, given potentially higher interest expenses. The company’s total debt rose to about $11.8 billion at the end of 2020, up from around $6.8 billion at the end of 2019. That said, the stock still remains down by about 50% from its pre-Covid highs, making the risk to reward proposition relatively attractive for investors.

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That said, the longer-term outlook for the company remains mixed, in our view. Booking trends have also been mixed, with reservations for the second half of 2021 apparently remaining below historical levels, although early trends for 2022 look strong, per the company. Norwegian has spent the better part of the last year raising funds via debt and equity issuances, with its debt load standing at about $11.8 billion at the end of Q4, up from about $6.8 billion a year ago. The higher interest costs are likely to weigh on the company’s profitability going forward. Coronavirus-induced changes in consumer behavior with regard to travel had altered the economic performance of Norwegian Cruise Line Holdings, affecting its ability to generate excess economic rents. However, as consumers returned to cruising after the 15-month sailing halt that ended in July 2021, they regained their appetite for travel, bolstered by the value proposition the holiday provides.

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For the year, the company is expecting earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.2 billion, a strong 18% increase from 2023. The future is bright for the cruise line industry in general and Norwegian Cruise Line in particular. The skies are a little cloudy right now, but things are brighter on the horizon. Big gains might come from the smallest of the country's three leading cruise line operators. See our analysis on Norwegian Cruise Line Stock Chances Of Rise for an overview of how NCLH stock has fared recently and how it compared to its peers. Overall, according to the analyst, the positives surely outweigh the negatives.

As Norwegian is smaller than its North American cruise peers, it has the ability to deploy its assets nimbly as cruising demand rises, allowing for strategic pricing tactics. All of the cruise-ship companies incurred significant debt during the worst of the COVID-19 pandemic, including Norwegian. © 2024 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions.

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Stifel analyst Steven Wieczynski reiterated a Buy rating on the shares with a price target of $25. NCLH, -1.48% jumped 6.6% in premarket trading Tuesday, after the cruise operator reported a wider-than-expected fourth-quarter loss, but expects a surpris... Cruise stocks rallied in intraday trading Tuesday after a strong earnings report and forecast from Norwegian Cruise Line Holdings (NCLH). Norwegian Cruise Line (NCLH) posted its fourth-quarter results revealing a quarterly loss of $0.18 per share.

Norwegian Cruise Line Holdings Ltd. (NCLH) Is a Trending Stock: Facts to Know Before Betting on It - Yahoo Finance

Norwegian Cruise Line Holdings Ltd. (NCLH) Is a Trending Stock: Facts to Know Before Betting on It.

Posted: Thu, 07 Mar 2024 08:00:00 GMT [source]

Norwegian Cruise Line (NCLH) rises on 4Q revenue and 1Q upbeat guidance. NCLH's incredibly strong results highlight the strength in its brand and the cruise industry, notes Ivan Feinseth. Between our three brands, we have a fleet of 32 ships that cruise to approximately 700 destinations globally. Over the next decade this will not only give NCLH the biggest growth story within the cruise industry but will also allow them to continue entering new markets with minimal cannibalization to their fleet, the analyst noted.

Why Norwegian Cruise Line Stock Jumped 31% in December - The Motley Fool

Why Norwegian Cruise Line Stock Jumped 31% in December.

Posted: Tue, 09 Jan 2024 08:00:00 GMT [source]

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... Carnival Corp. and Royal Caribbean Cruises are down just 24% and 7% respectively from their summer peaks. Norwegian has come through with a 22% stock increase in 2023, but Royal Caribbean shareholders have seen their shares more than double this year.

Dive into Norwegian Cruise Line Holdings

Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see Barchart's disclaimer. Cruise line stocks stormed back into investor fancy earlier this year, but they have corrected sharply since their summertime highs. Norwegian Cruise Line (NCLH 1.37%) stock is now down 36% since hitting a high-water mark in late July.

Carnival, Royal Caribbean, and Norwegian had to do a lot of scary things to stay literally and figuratively afloat after the COVID-19 crisis decimated the business. The share count and debt load at Norwegian has roughly doubled since the end of fiscal 2019, but the bloat isn't permanent. What's the point of focusing on 2024's challenging results in a multiyear investment strategy? Analysts see explosive earnings growth at Norwegian as cruise vacations get back to penetrating the mainstream travel market.

The Goldman Sachs Group assumed coverage on shares of Norwegian Cruise Line in a research note on Wednesday, March 13th. They issued a "neutral" rating and a $19.00 price target for the company. Wells Fargo & Company reissued an "equal weight" rating and issued a $18.00 price target on shares of Norwegian Cruise Line in a research note on Friday, January 5th. Susquehanna increased their price target on shares of Norwegian Cruise Line from $20.00 to $21.00 and gave the company a "neutral" rating in a research note on Wednesday, February 28th. Citigroup dropped their price target on shares of Norwegian Cruise Line from $23.00 to $19.00 and set a "neutral" rating for the company in a research note on Monday, February 12th. Finally, Stifel Nicolaus restated a "buy" rating and issued a $25.00 price objective on shares of Norwegian Cruise Line in a report on Tuesday, April 9th.

The company has obtained export credit financing with favorable terms to fund 80% of the contract price of each of the two Oceania Cruises and Regent Seven Seas Cruises ships. “This strategic new-ship order across all three of our award-winning brands provides for the steady introduction of cutting-edge vessels into our fleet and solidifies our long-term growth,” said President and CEO Harry Sommer. If you buy and hold Norwegian Cruise Line stock, the expectation is over time the near-term fluctuations will cancel out, and the long-term positive trend will favor you - at least if the company is otherwise strong. Try the Trefis machine learning engine above to see for yourself how Norwegian Cruise Line stock is likely to behave after any specific gain or loss over a period. Value investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value.

The good news is that revenue clocked in at a record $2.536 billion, in line with expectations and a 57% surge over the prior year's admittedly depressed results. More importantly, its top-line showing was 33% ahead of where it was during the same seasonally potent summertime quarter in 2019. In other words, it's now ahead of where it was before the pandemic shut the industry down for a painfully prolonged period.

Now while cruising from the U.S. ports is set to resume this July, we still think that 2021 is likely to be a relatively slow year for Norwegian. Norwegian will likely miss out out on much of the lucrative summer cruising season and it’s also possible that older customers - who are a key demographic - will take a wait and watch approach to cruising post the pandemic. That said, 2022 is looking much stronger, with consensus estimates pointing to revenues of $6 billion, just slightly below the $6.5 billion in revenue the company posted in 2019. Ticket prices have also apparently been strong, trending above 2019 levels. Although Norwegian’s higher levels of leverage (debt has doubled to $12 billion from pre-pandemic levels) are a concern, the stock could still be worth a look considering that it remains down by about 45% from its 2019 levels. Norwegian Cruise Line posted mixed financial results earlier this month.

And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data. Weakness in consumer spending spurred by an economic downturn could affect discretionary spending, leading pricing to soften and lower onboard spending. Revenue was ahead of guidance, whereas its net loss was a little more than expected.