Northcoast starts Norwegian at Buy on value shift to stock holders

Northcoast last night initiated coverage of Norwegian Cruise Line (NCLH) with a Buy rating and $21 price target The firm believes Norwegian offers the “greatest potential for the shift in value” from debt holders to equity holders as the company works to transform its balance sheet amid a “fundamentally strong industry backdrop.” Aside from the balance sheet recovery, the company has a “number of achievable self-help initiatives” underway to drive real-time operational efficiencies and cost benefits, in addition to six new ships entering service in the next three years, the analyst tells investors in a research note. Northcoast believes Norwegian’s 2026 targets are “within reach.”