Morgan Stanley analyst Stephen Grambling maintained a Hold rating on Norwegian Cruise Line (NCLH – Research Report) today and set a price target of $21.00.
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Stephen Grambling has given his Hold rating due to a combination of factors affecting Norwegian Cruise Line’s performance. The company’s shares have experienced a significant decline in recent months, largely due to concerns about consumer spending and broader economic conditions. Additionally, specific actions by the company, such as fleet-wide promotions and changes in management within luxury brands, have contributed to these concerns.
Despite trading at a relatively low multiple of its updated EPS guidance, Norwegian Cruise Line’s high operating and financial leverage presents a risk if market trends worsen. The company’s recent financial results showed a slight miss in adjusted EPS and a reduction in net yield guidance, which contrasts with the performance of its peers. These factors, coupled with cost-saving measures that may be impacting demand, particularly in higher-end brands, justify the Hold rating as the company navigates these challenges.
In another report released on April 28, Bank of America Securities also maintained a Hold rating on the stock with a $23.00 price target.