:max_bytes(150000):strip_icc()/GettyImages-2151013011-3d067b7173f24186bd308c5bb2e30dbb.jpg "Norwegian Cruise Line Stock Gets Boost From Mizuho Upgrade")
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Key Takeaways
- Norwegian Cruise Line Holdings shares rose Tuesday after it received an upgrade and price-target boost from Mizuho Securities as it cuts costs and the industry’s outlook improves.
- Mizuho lifted its rating to “buy” from “neutral,” and the price target to $24 from $21.
- Mizuho executive director Ben Chaiken said the cruise company has streamlined operations and is benefiting from high demand and limited supply.
Shares of Norwegian Cruise Line Holdings (NCLH) advanced in intraday trading Tuesday as Mizuho Securities upgraded the stock and raised the price target on the company’s cost-cutting and a positive industry outlook.
Mizuho lifted its rating to “buy” from “neutral,” and the price target to $24 from $21.
Norwegian ‘Streamlining’ Its Business
Mizuho executive director Ben Chaiken explained that Norwegian is “streamlining” its business, including reducing expenses, which should improve near- and medium-term results. In addition, he noted that the cruise line is benefiting from “a very favorable industry backdrop” of limited supply and high demand.
Chaiken said Norwegian is “optimizing its fleet itineraries” and building out its private island portfolio.
He added that during its recent investor day, the company “coherently outlined a path to substantially higher earnings.”
Norwegian Cruise Line Holdings shares were up 4.3% to $16.68 as of 11:47 a.m. ET Tuesday but still are down almost 17% in 2024.