Evaluating Norwegian Cruise Line: Insights From 10 Financial Analysts

Providing a diverse range of perspectives from bullish to bearish, 10 analysts have published ratings on Norwegian Cruise Line NCLH in the last three months.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

In the assessment of 12-month price targets, analysts unveil insights for Norwegian Cruise Line, presenting an average target of $23.35, a high estimate of $32.00, and a low estimate of $17.50. This upward trend is apparent, with the current average reflecting a 5.9% increase from the previous average price target of $22.05.

Understanding Analyst Ratings: A Comprehensive Breakdown

The analysis of recent analyst actions sheds light on the perception of Norwegian Cruise Line by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Norwegian Cruise Line. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Norwegian Cruise Line compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Norwegian Cruise Line's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Norwegian Cruise Line's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Norwegian Cruise Line analyst ratings.

Discovering Norwegian Cruise Line: A Closer Look

Norwegian Cruise Line is the world's third-largest cruise company by berths (around 66,500). It operates 32 ships across three brands—Norwegian, Oceania, and Regent Seven Seas—offering both freestyle and luxury cruising. The company redeployed its entire fleet as of May 2022. With 13 passenger vessels on order among its brands through 2036, representing 41,000 incremental berths, Norwegian is increasing capacity faster than its peers, expanding its brand globally. Norwegian sails to around 700 global destinations.

A Deep Dive into Norwegian Cruise Line's Financials

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Growth: Norwegian Cruise Line's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 7.57%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of 6.89%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): Norwegian Cruise Line's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 30.98% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Norwegian Cruise Line's ROA is below industry averages, indicating potential challenges in efficiently utilizing assets. With an ROA of 0.82%, the company may face hurdles in achieving optimal financial returns.

Debt Management: Norwegian Cruise Line's debt-to-equity ratio is notably higher than the industry average. With a ratio of 19.39, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

What Are Analyst Ratings?

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

This article was generated by Benzinga's automated content engine and reviewed by an editor.