According to a report published by CNBC, Miami-based cruise line Norwegian Cruise Line’s (NCLH) full fleet of 28 ships will resume service by April 1, CEO Frank Del Rio said. He added that 75% of the vessels will return to regular operations by the end of 2021.
The company offers cruise services in North America, the Mediterranean, the Baltic, Central America, Bermuda and the Caribbean. Norwegian’s shares lost 1.8%, at the time of writing, in early trade on Wednesday.
Currently, eight of the company’s ships are in service across its three cruise brands. (See Norwegian stock chart on TipRanks)
Del Rio said, “Pent-up demand continues to be very, very strong for the sailings we’ve operated thus far.”
Two months ago, Deutsche Bank (DB) analyst Chris Woronka reiterated a Hold rating on the stock but raised the price target to $26 from $25 (6.3% downside potential).
In a research note to investors, the analyst said, “The cruise stocks are no longer reacting to positive data points of any stripe, including company outlooks and pricing surveys.”
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys and 1 Hold. The average Norwegian Cruise Line price target of $34.33 implies 23.7% upside potential. Shares have gained 61.1% over the past year.
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