Morgan Stanley Cuts Norwegian Cruise Line Holdings Ltd. (NCLH)'s Price Target To $25, Maintains Equal Weight Rating

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is among the 13 Most Undervalued Stocks Under $20 to Buy. On November 10, Morgan Stanley analyst Stephen Grambling cut his price target for the stock to $25 from $27, while maintaining an Equal Weight rating on its shares.

The adjustment followed the cruise operator’s third-quarter fiscal 2025 results, with revenue missing estimates, and the company’s profit forecasts for the fourth quarter also falling below expectations.

Despite achieving a record quarterly revenue of $2.94 billion, which was up 4.7% from last year, the figure fell short of estimates of $3.02 billion, which the company attributed to a dip in air program participation.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH)’s EPS came in at $1.20, beating estimates by 4 cents and exceeding guidance by 6 cents. However, the company’s profit forecast of $0.27 per share in Q4 came in below analysts’ forecasts of $0.30, due to soft demand for cruise vacations and cost pressures.

The stock is down by over 14% since the earnings call, with analysts pointing out concerns among investors about a dip in ticketing revenue, amid the cruise company’s strong focus on families.

Morgan Stanley has slashed its EBITDA forecasts by about 1% between fiscal years 2025 and 2027. The analyst stated that while third-quarter results were in line with expectations, an ongoing debate has emerged over the pricing power of cruise operators.

Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) is a global cruise company offering itineraries to over 700 destinations. It operates Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. The company has a combined fleet of 32 ships and over 66,500 berths.

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