:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2151013011-3d067b7173f24186bd308c5bb2e30dbb.jpg "The passenger cruise ship Norwegian Viva arrives at the French Mediterranean port of Marseille")
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Key Takeaways
- Norwegian Cruise Line Holdings shares rose Tuesday after it net 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- Mizuho lifted its rating to “buy” from “withdrawn,” and the price target to $24 from $21.
- Mizuho executive director Ben Chaiken said the cruise company has streamlined transaction actions and is benefiting from high demand and limited supply.
Shares of Norwegian Cruise Line Holdings (NCLH) advanced in intraday exchange Tuesday as Mizuho Securities upgraded the stock and raised the price target on the company’s cost-cutting and a positive industry slant.
Mizuho lifted its rating to “buy” from “neutral,” and the price target to $24 from $21.
Norwegian ‘Streamlining’ Its Business
Mizuho supervisory director Ben Chaiken explained that Norwegian is “streamlining” its business, including reducing expenses, which should promote near- and medium-term results. In addition, he noted that the cruise line is benefiting from “a very favorable activity backdrop” of limited supply and high demand.
Chaiken said Norwegian is “optimizing its fleet itineraries” and building out its secluded island portfolio.
He added that during its recent investor day, the company “coherently outlined a path to substantially elevated 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 scarcely 17% in 2024.
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