Why Norwegian Cruise Line Holdings Investors Won This Week

Anyone up for a smooth cruise through the stock market? Norwegian Cruise Line (NYSE:NCLH) Norwegian shares have performed well in recent trading sessions. Their value has increased more than 12% since the beginning of the week as of Friday morning, according to data compiled by S&P Global Market Intelligence. The analyst’s price target increase reflects the generally positive sentiment toward the cruise industry in general and Norwegian in particular.

A bull becomes even more positive

Before the market opens on Wednesday, Mizuho Prognosticator Ben Chaiken has revised his fair value assessment of Norwegian stocks, moving them up $1 to $26 per share. In doing so, he maintained his outperform (or buy) recommendation. While the change isn’t exactly groundbreaking, it has widened the gap between the price target and the current level—the new target implies that the stock has nearly 37% upside potential.

This modest increase also obscures the fact that the stock is currently one of Chaiken’s top picks.

He is particularly enthusiastic about what he believes will be the airline’s standout performance next year. He wrote that for 2025, he thinks Norwegian “has one of the most compelling event pipelines in our coverage for three reasons: 1. better-than-expected costs, 2. tailwinds from improved itineraries, and 3. a shift in sentiment.”

The best in cruise values

Norwegian has significant room to reduce its net cruise costs, Chaiken added, and if those savings are managed effectively, the company’s fundamentals could see marked improvements. Norwegian is a favorite among the cruise stocks covered by Mizuho, ​​the analyst wrote, adding that it benefits from “the most compelling event trajectory in our broader coverage.”

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.