TD Cowen Initiates Norwegian Cruise Line (NCLH) With Buy rating, $31 PT

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is one of the most undervalued stocks to buy and hold for 3 years. On July 22, TD Cowen initiated coverage of Norwegian Cruise Line with a Buy rating and a $31 price target. The firm believes that cruise lines are an underappreciated segment of the travel industry. TD Cowen forecasts an annual revenue growth of 7% for the cruise industry through 2029.

In Q1 2025, the company met or exceeded guidance across all key metrics for the quarter. Net yields increased by 1.2% above expectations, contributing to an Adjusted EBITDA of $453 million, which also surpassed guidance. The trailing 12-month margin was 35.5%, which was a 2.8% improvement over the previous year. Adjusted EPS was $0.07, slightly below guidance due to a $0.05 foreign exchange headwind.

Positive developments for NCLH include the on-time and on-budget delivery of the new ship, Norwegian Aqua, and enhancements at Great Stirrup Cay, which include a new pier and resort-style amenities, expected to improve guest satisfaction and incremental yields. The revamped NCL app has been successful, with over 800,000 guests logging in during the quarter.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a cruise company in North America, Europe, the Asia-Pacific, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.