Morgan Stanley sees estimates for Norwegian Cruise moving lower

Morgan Stanley keeps an Equal Weight rating on Norwegian Cruise Line (NCLH) with a $24 price target after meeting with management. The company “flagged expectations for an even more back-end loaded yield cadence” in the fiscal year, likely driven by lower contribution in Q3 from Great Stirrup Cay, the analyst tells investors in a research note. Morgan Stanley sees consensus estimates moving lower to factor in a later contribution from the Great Stirrup Cay water park and higher fuel costs. While the stock’s recent pullback brings an improved risk/reward, Morgan Stanley awaits impact from the water park to become more constructive, the analyst contends.