Stephen Grambling, an analyst from Morgan Stanley, maintained the Hold rating on Norwegian Cruise Line. The associated price target remains the same with $27.00.
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Stephen Grambling has given his Hold rating due to a combination of factors impacting Norwegian Cruise Line’s financial performance. Despite exceeding its third-quarter guidance, the company’s results did not meet Morgan Stanley’s or consensus expectations, and the fourth-quarter guidance was also set lower, indicating potential challenges in pricing power. This is particularly concerning as the net yield for the fourth quarter appears to have decreased compared to previous guidance, even though occupancy rates have surpassed expectations.
Additionally, the stock is currently trading at a discounted multiple following a recent pullback, but concerns about broader pricing issues may lead to further pressure on the shares. The company’s forward bookings remain strong, yet the market may remain cautious due to the mismatch in near-term versus long-term pricing trends. These factors collectively contribute to the Hold rating, as there are uncertainties regarding future pricing and consensus expectations for 2026 and 2027.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $25.00 price target.