Nomura Securities Starts IPO Norwegian Cruise Line Hodings (NCLH) at Neutral

Nomura Securities initiates coverage on recent IPO Norwegian Cruise Line Hodings (NASDAQ: NCLH) with a Neutral rating and $30 price target.

Analyst Harry Curtis comments, "Neutral after strong Post-IPO performance. The stock closed at $26.95 on Tuesday, 41% above its $19 offering price. We think there is ample upside to our 18-month price target of $34, but only 11% using the same parameters we use to value Royal Caribbean (RCL) and Carnival (CCL). NCLH is now valued at a 640bp premium to CCL/RCL on 2013E EPS but only 40bp on 2014E EPS. We believe that this is justified by ~30% capacity growth over the next two years, but arguing for multiple expansion from here would be too aggressive. We strongly recommend that investors buy NCLH on pullbacks. Over the next 24 months, NCLH will add 30% more berths to its fleet at stronger pricing. FY13E EPS at $1.34; FY14E EPS at $2.26."

For an analyst ratings summary and ratings history on Norwegian Cruise Line Hodings click here. For more ratings news on Norwegian Cruise Line Hodings click here.

Shares of Norwegian Cruise Line Hodings closed at $26.95 yesterday.

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