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JPMorgan Downgrades Norwegian Cruise Line (NCLH), Cuts Price Target to $20

By Sajjl Nooranne | February 22, 2026, 7:30 AM

We recently published an article titled 10 Best Cruise Stocks to Buy Right Now.

On February 13, JPMorgan downgraded Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) to Neutral from Overweight and reduced its price target to $20 from $28 following the announcement that CEO Harry Sommer departed as part of a leadership transition. While the firm expressed confidence in incoming CEO John Chidsey’s ability to enhance execution, improve financial performance, and reduce leverage, it opted to adopt a more cautious stance during the transition period.

During the third quarter of 2025, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) reported record results, meeting or exceeding guidance across key metrics. Adjusted EPS totaled $1.20, surpassing guidance by $0.06, and the company reaffirmed its full-year adjusted EBITDA outlook while raising adjusted EPS guidance. The company also announced an agreement with Spain’s Repsol to supply renewable marine fuels at the Port of Barcelona, reinforcing its sustainability commitments. Despite near-term uncertainty tied to leadership changes, the company’s operational momentum, earnings growth, and strategic initiatives provide a foundation for longer-term value creation once execution visibility improves.

Founded in 1966 and headquartered in Miami, Florida, Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) operates a global fleet offering diversified cruise itineraries. Its established brand portfolio and continued focus on operational efficiency and sustainability position it to participate in sustained cruise industry demand growth, making it fourth in the list of best cruise stocks to buy right now.

While we acknowledge the potential of NCLH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 8 Up and Coming Streaming Companies and Services and 11 Best Canadian Growth Stocks to Buy According to Hedge Funds.

Disclosure: None.

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