Norwegian Cruise Line Holdings (NCLH) PT Raised to $36 at Tigress Financial Partners

Tigress Financial Partners analyst Ivan Feinseth raised the price target on Norwegian Cruise Line Holdings (NYSE: NCLH) to $36.00 while maintaining a Strong Buy rating.

The analyst comments "We reiterate our Strong Buy rating and increase our 12-month target price to $36 as NCLH continues to experience strong cruise demand and pricing power combined with its industry-leading fleet expansion and as NCLH and the cruise industry continue to experience increasing market penetration in the over $2 trillion vacation market. NCLH remains well-positioned to gain increasing market share in the $2 trillion vacation market driven by its premium Regent and Oceana brands along with the broad value offering of its Norwegian line. NCLH continues to increase its fleet size with a projected 13 additional ships to be launched over the next 12 years, with increasing efficiency and industry-leading features and increasing onboard revenue opportunities. NCLH recently reported Q3 2024 results increased 11% Y/Y to a record $2.81 billion, helped by a 4% increase in capacity and driven by strong cruise demand and pricing combined with increasing onboard spending and price optimization across all of its itinerary offerings, especially in Alaska, Canada, and New England. NCLH also increased its full-year guidance for the fourth time this year on strong cruise demand, strong booking trends, and record booking levels. Advanced ticket sales balance increased 6% to a record $3.3 billion. NCLH has furthered its successful Free At Sea with the introduction of its all-new More At Sea, offering even more benefits and premium inclusions. Oceania Cruises introduced its Your World Included, a new brand promise featuring an updated selection of always-included guest amenities. NCLH also announced a multiyear partnership with the NHL (National Hockey League) for a multiyear U.S. partnership, naming Norwegian Cruise Lines the official cruise line of the NHL. NCLH is also well-positioned from the increasing consumer spending on travel as global economic, demographic, and travel trends and a re-prioritization of consumer spending will continue to favor the cruise industry, especially as it offers the best value for the consumers’ travel dollar. NCLH has successfully targeted higher-end demographic passengers with higher than industry average net worth and incomes, and its deployment shift to longer and more immersive itineraries is designed to attract higher quality guests, generate higher net yields, and increase guest satisfaction and loyalty. NCLH’s value-added bundling and market-to-fill strategies continue to drive its industry-leading pricing and yields. NCLH will also use increases in its cash flow to reduce and pay down debt issued at the beginning of the pandemic as well as opportunistically refinancing, improving its balance sheet and capital structure, driving a significant increase in Return on Capital which will drive a recovery in Economic Profit and significant shareholder value creation. We believe a significant upside in the shares exists, and our 12-month target price of $36 represents a potential return of over 28% from current levels."

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