Mizuho Downgrades Norwegian Cruise (NCLH) to Neutral

Mizuho analyst Ben Chaiken downgraded Norwegian Cruise (NYSE: NCLH) from Outperform to Neutral with a price target of $17.00 (from $22.00).

The analyst comments: “Norwegian is in the midst of a turnaround, in part resulting from self-inflicted wounds (accelerated supply, change in customer segmentation, delays in construction, changes to personnel and adjustments to the booking-curve), as well as macro headwinds (e.g., war in the ME/higher oil). We are constructive on cruise as a sector (i.e., a growing percentage of leisure travel), and have witnessed all three major Ocean cruise lines (Royal, Carnival, Norwegian) compete successfully amongst one another in a healthy fashion. With this backdrop, we believe NCLH will successfully emerge from its turnaround. However, we believe shares could trade sideways for the next 6-12 months, and there could be an opportunity to accumulate shares lower given what we see as an uncertain medium-term outlook, and downside to Street estimates. It is with this context that we downgrade shares of NCLH from Outperform to Neutral.”

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

Shares of Norwegian Cruise closed at $18.18 yesterday.

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