Northcoast downgrades Norwegian Cruise on challenging industry backdrop

Northcoast downgraded Norwegian Cruise Line (NCLH) to Neutral from Buy without a price target following the earnings report. Norwegian’s balance sheet transformation has been slower than expected, the analyst tells investors in a research note. Further, Northcoast does not see a healthy fundamental backdrop for the cruise industry. Channel work and recent earnings reports indicate the war in Iran’s impact on fuel costs and consumer bookings have created a more difficult industry backdrop, the firm contends.