Norwegian Cruise Line (NYSE:NCLH) was upgraded to Buy from Hold, with a new price target of $21, up from $20 at Truist on Wednesday. The Truist upgrade is the second in a matter of days for the cruise stock after Mizuho lifted it to Buy on Tuesday.
Truist said that trends remain encouraging for the cruise line sector as the post-COVID narrative evolves.
"From lengthy conversations this month with senior travel reservation industry executives and from examining "big data" on future cruise bookings and pricing, we think overall booking and pricing trends continue to look encouraging with the greatest opportunity for potential 2024 earnings upside continuing to come from elevated pricing on near-in bookings given the limited inventory left to sell for 2024," said the firm.
Specifically for NCLH, analysts at Truist said that despite an improving demand and pricing environment, shares are down roughly 20% since last July, compared to S&P 500 performance of up about 20% over the same time period, and they believe "it is time to get back onboard NCLH."
"Besides a strong revenue growth environment, we really like the potential/optionality the company has with further monetizing Great Stirrup Cay, something we believe management is more than aware of as well," added the firm.