Norwegian Cruise downgraded at Susquehanna with turnaround in ‘middle innings’

As previously reported, Susquehanna analyst Christopher Stathoulopoulos downgraded Norwegian Cruise Line (NCLH) to Neutral from Positive with a $17 price target. While the firm has confidence in newly promoted CEO Harry Sommer, it is “clear the liner is still in the early-to-middle innings of its turnaround,” formal long-term guidance is likely several months away and peer Royal Caribbean (RCL) is potentially hitting their long-term targets sooner than expected, so Susquehanna is moving to the sidelines. Despite constructive mid-term guidance, the return to pre-pandemic adjusted EBITDA margins is going to take “some time,” the analyst added.