Bank of America Securities analyst Andrew Didora reiterated a Hold rating on Norwegian Cruise Line (NCLH – Research Report) today and set a price target of $26.00.
Andrew Didora has given his Hold rating due to a combination of factors related to Norwegian Cruise Line’s recent financial performance and future outlook. The company reported better-than-expected earnings for the fourth quarter of 2024, but its 2025 EBITDA guidance was slightly below market expectations. This led to an adjustment in the 2025 and 2026 earnings forecasts, with a slight increase in the 2025 EPS and a minor decrease in the 2026 EPS estimate.
Despite encouraging pricing trends and expected low- to mid-single digit net yield growth, concerns about consumer spending have impacted the stock’s performance, with shares down significantly year-to-date. Additionally, Norwegian Cruise Line’s leverage remains high compared to its peers, although it is expected to decrease over the coming years. The company’s debt maturities in the next few years also pose a potential risk, influencing the decision to maintain a Neutral rating with a price objective of $26.
According to TipRanks, Didora is a 3-star analyst with an average return of 1.6% and a 54.37% success rate. Didora covers the Industrials sector, focusing on stocks such as Alaska Air, American Airlines, and Allegiant Travel Company.
In another report released on February 28, Wells Fargo also maintained a Hold rating on the stock with a $28.00 price target.