Susquehanna Cuts Norwegian Cruise Line Price Target to $16
Norwegian Cruise Line reaffirmed 2026 earnings guidance of $1.50 per share, above the $1.37 analyst consensus, and projected 2027 net interest expense of $860 million to $880 million.
Susquehanna lowered its price target for Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) to $16 from $17 on Tuesday, retaining a “neutral” rating. The revised target implies approximately 5% upside from the stock’s previous closing price.
The reduction leaves Susquehanna below the $20.20 average target compiled by MarketBeat. The company’s consensus recommendation remains “Hold,” with 16 analysts assigning that rating, five recommending “Buy” and two assigning “Strong Buy.”
Shares in the parent of Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises opened Tuesday at $15.24, giving the group a market capitalization of approximately $7 billion.
The target cut follows a September 30 update in which Norwegian Cruise Line Holdings said third-quarter results should exceed its July forecast because revenue was stronger than expected. That forecast called for adjusted earnings of $0.90 per share and adjusted EBITDA of $874 million. The company did not provide revised quarterly figures.
Brokerages differ on valuation
Other firms have also reduced their targets while retaining different recommendations. Citigroup lowered its target to $19 from $22 on October 2 but kept a “buy” rating. JPMorgan Chase cut its target to $13 from $17 on September 24 and maintained a “neutral” recommendation.
Barclays reduced its target to $18 from $19 on July 31, retaining an “equal weight” rating. Freedom Capital downgraded the shares from “strong-buy” to “hold” that day, while TD Cowen moved in the opposite direction on September 8, upgrading the stock to “strong-buy.”
The shares are trading below their 50-day moving average of $15.73 and 200-day average of $17.82. The stock’s 52-week range is $13.63 to $25.13.
Earnings and financing outlook
In quarterly results released July 30, Norwegian Cruise Line Holdings reported earnings of $0.48 per share, exceeding the $0.41 analyst consensus but falling from $0.51 a year earlier. Revenue increased 4.9% year over year to $2.64 billion, narrowly missing expectations of $2.65 billion.
The company’s debt-to-equity ratio stands at 5.40, with a current ratio of 0.20 and a quick ratio of 0.17. Its reported net margin for the quarter was 7.49%.
Institutional investors own 69.58% of the stock. First-quarter portfolio changes included a new Elliott Investment Management position valued at approximately $246.6 million. The California Public Employees Retirement System increased its holding by 358.8% to approximately 3.68 million shares.
Zacks Research reduced its second-quarter 2027 earnings estimate to $0.34 per share from $0.37 on October 12 and retained a “Strong Sell” rating. Its forecasts for full-year 2027 and 2028 earnings are $1.26 and $1.73 per share, respectively.
Norwegian Cruise Line Holdings reaffirmed its full-year 2026 guidance in the September update; its earnings forecast stands at $1.50 per share, compared with the $1.37 analyst consensus. For 2027, the company expects net interest expense of $860 million to $880 million.
