Norwegian Cruise Line Stock Rises On Analyst Upgrade Citing Long-Term Demand Trends, But Retail’s Downbeat
Synopsis
Despite the upgrade, sentiment on Stocktwits turned ‘bearish’ from ‘neutral’ a day ago.
Shares of Norwegian Cruise Line rose more than 4% on Monday after the company received a ratings upgrade from JPMorgan, but retail sentiment was downbeat.
JPMorgan upgraded the company to ‘Overweight’ from ‘Neutral’ with an unchanged price target of $30, Fly reported.
According to the firm, it sees a favourable risk/reward set up following its meeting with the management, which continues to see consumer demand despite the macroeconomic "noise" backdrop.
The report noted that Norwegian “has favorable demographics, as each of its brands targets the high-end consumer, with its management prudently embedding a 170 basis point spread in 2025 between net yields and net cruise costs.”
Last week, Citi reportedly raised the firm's price target on Norwegian Cruise Line to $34 from $32, saying that many of the challenges the company faces are short-lived and would normalize in 2026.
Additionally, its strong pricing power and cost performance "could turn out to be more durable," the report noted.
Norwegian’s strong Q4, it said, was overshadowed by a guidance plagued by currency, drydock, and occupancy headwinds.
Despite the upgrade, sentiment on Stocktwits turned bearish from neutral a day ago with many citing tariff worries. Message volume inched up on the normal zone.
One bearish watcher warned that the tariff war’s long-term impact would likely weigh down the stock.
While another was hopeful for the stock to end at $30 by the end of Monday.
For its fourth quarter, Norwegian Cruise Line posted earnings per share at $0.26, beating estimates of $0.11. The company reported net sales of $2.11 billion, roughly in line with estimates, driven by “strong revenue growth and continued execution on cost efficiencies.”
Norwegian Cruise Line stock is down 22% year-to-date.
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