Barclays analyst Brandt Montour upgraded Norwegian Cruise Line Holdings Ltd. (NCLH) to Overweight from Equal-Weight on December 13, 2024. The firm also increased its price forecast for NCLH from $28 to $32.
The upgrade was attributed to NCLH's higher beta in a recovering macroeconomic environment, its exposure to cross-Atlantic travel, and unique multi-year cost opportunities within the cruise industry. Montour's proprietary pricing data indicated strong demand for European and Alaska sailings in 2025.
The analyst noted that the company's multi-year cost savings program is expected to drive earnings growth and balance sheet improvements. Concerns about pricing power in a more balanced cruise market were viewed as minimal due to the cruise industry’s continued value proposition compared to land-based alternatives.
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