On Monday, stocks of cruise operators Norwegian Cruise Line (NYSE:NCLH), Carnival (NYSE:CCL), and Royal Caribbean (NYSE:RCL) gained 7.6%, 7.3%, and 4.1%, respectively. The upside came after Norwegian Cruise Line raised its full-year guidance, citing strong demand and record bookings in 2024 so far.
Despite NCLH’s upbeat outlook, J.P. Morgan analyst Matthew Boss remained sidelined on the stock. He reiterated a Hold rating on Norwegian Cruise Line stock with a price target of $20, implying 18.1% upside potential.
In a note dated May 20, Boss wrote that he believes the increased forecast points to a robust near-term outlook for NCLH and the cruise industry. However, the analyst believes that the broader macroeconomic uncertainties and high debt levels may pose risks to the company’s financial performance.
Norwegian Cruise Line’s Upbeat Outlook
Buoyed by strong performance so far, NCLH raised its adjusted earnings per share outlook to $1.42 from $1.32. Analysts were expecting the company to report $1.36. Further, the company lifted the adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) guidance to about $2.3 billion from $2.25 billion.
In addition, the company provided bullish targets for 2026. NCLH said it expects $2.45 in adjusted EPS by 2026. This compares favorably with the $2.22 a share projected by analysts.
What Is the Best Cruise Ship Stock to Buy?
Among the above-mentioned three cruise stocks, both CCL and RCL have a Strong Buy consensus rating, while NCLH stock has a Hold rating. Regarding future price performance, analysts expect an upside potential of 39.1% and 11.8% in CCL and RCL, respectively.
