Analyst Stephen Grambling from Morgan Stanley maintained a Hold rating on Norwegian Cruise Line and keeping the price target at $24.00.
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Stephen Grambling’s rating is based on a combination of factors including Norwegian Cruise Line’s recent stock performance and financial results. Despite a significant rally of 46% over the past three months, the stock is still down 10% year-to-date, underperforming both the market and its peers. This underperformance is compounded by concerns over weaker commentary related to Europe and luxury brands, which has resulted in a historically wide valuation discount compared to peers.
Furthermore, while the company reported a 2Q earnings per share that slightly missed consensus expectations, it maintained its full-year guidance, indicating stability. The 2Q EBITDA exceeded expectations due to lower net cruise costs, but higher interest expenses affected the earnings per share. The forward guidance for 3Q suggests a modest improvement, with a slight increase in net yield growth and a rebound in bookings, which supports the Hold rating as the stock may see a re-rating against its group.
In another report released on July 30, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a $26.00 price target.