Truist downgrades Norwegian Cruise after ‘massive outperformance’

Truist analyst C. Patrick Scholes downgraded Norwegian Cruise Line to Hold from Buy with a price target of $23, up from $17. The “massive outperformance” year-to-date and especially over the past two months of the cruise sector brings the equities far closer to a theoretical fair value than when Truist became more positive on the sector last September, the analyst tells investors in a research note. While pushing out the price target year to 2025 from 2024 and raising estimates, the firm struggles to see significant upside on any of the stocks and is taking a more neutral sector stance. With that said, Truist believes booking momentum for 2024 and 2025 is solid and that the industry is “building a strong base of business.”