Norwegian Cruise Line upgraded to Buy from Neutral at Citi

Citi upgraded Norwegian Cruise Line to Buy from Neutral with a price target of $30, up from $20. The firm’s analysis and data suggest this growth the recent share rally in the cruise space “has real legs” into 2025 and beyond. Norwegian’s shift in strategy gives Citi confidence that the company’s “considerable pricing opportunity will not be offset by runaway costs,” the analyst tells investors in a research note. The firm estimates 23% annual earnings growth over the next three years, which it says could stretch closer to 30% if Norwegian is able to sustain its targeted 2.5% yield/cost spread, “with either outcome equating to big earnings upside and multiple expansion.”