J.P. Morgan analyst Matthew Boss maintained a Hold rating on Norwegian Cruise Line (NCLH – Research Report) yesterday and set a price target of $30.00.
Matthew Boss has given his Hold rating due to a combination of factors influencing Norwegian Cruise Line’s financial outlook. Despite the company reporting a stronger-than-expected fourth-quarter performance, with adjusted earnings per share surpassing both management’s guidance and market expectations, there are underlying concerns that temper enthusiasm. The favorable results were driven by better net yields and a significant foreign exchange benefit, yet the company’s guidance for the upcoming fiscal year suggests a more modest growth trajectory.
Management’s initial guidance for fiscal year 2025 indicates a slight underperformance relative to market expectations, with projected earnings per share slightly below consensus. Additionally, while the company is experiencing strong consumer demand and is optimally booked for the coming year, the anticipated growth in net yields and occupancy rates is somewhat conservative. The balance between potential upside and the challenges in achieving cost efficiencies over the long term underpins the Hold rating, reflecting a balanced risk/reward scenario for investors.
In another report released yesterday, Wells Fargo also maintained a Hold rating on the stock with a $28.00 price target.