In a report released yesterday, James Hardiman from Citi maintained a Buy rating on Norwegian Cruise Line, with a price target of $28.00.
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James Hardiman has given his Buy rating due to a combination of factors that highlight Norwegian Cruise Line’s upside potential under its new leadership. He views the challenges facing NCLH as primarily stemming from internal execution and organizational issues on the shore-side, rather than weaknesses in the cruise product or deployment strategy, suggesting that operational fixes could translate into a comparatively swift improvement in performance.
Hardiman also emphasizes that management sees significant room to enhance revenue, particularly by narrowing the gap between the company’s pricing and what they consider the true value of its offerings, given the compression of its historical yield premium versus peers. In addition, he points to the outsized opportunity in modernizing NCLH’s revenue management capabilities—where the company views itself as far behind the industry—and despite a modest EPS reduction tied to higher fuel costs, his target implies an attractive expected return of more than 50%, supporting the Buy recommendation.
Hardiman covers the Consumer Cyclical sector, focusing on stocks such as Norwegian Cruise Line, Thor Industries, and Winnebago Industries. According to TipRanks, Hardiman has an average return of 3.9% and a 43.13% success rate on recommended stocks.
In another report released yesterday, Stifel Nicolaus also maintained a Buy rating on the stock with a $28.00 price target.