Norwegian Cruise Line Holdings shares trail broader market
Analyst consensus remains positive despite recent stock declines and negative free cash flow margin.
Norwegian Cruise Line Holdings, which operates in North America and international markets, has a market capitalization of $6.7 billion, according to the report. Its brands include Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises, offering accommodations, restaurants, bars and lounges.
The report said NCLH shares were 44% below their 52-week high of $26.09, reached Sept. 29. The stock had dropped 30.4% during the latest three-month period cited, while the Nasdaq Composite gained 6.7%. Over 52 weeks, NCLH declined 41.6%, compared with a 20.9% increase for the index.
Operational and cash-flow measures also showed pressure. According to the report, passenger cruise days decreased over the prior two years, while the company’s free cash flow margin remained negative and below average, despite the prospect of improvement.
Among 26 analysts covering NCLH, the consensus rating was Moderate Buy, the report said. Their average price target was $19.56, implying potential upside of 33.9% from the share price used in the analysis.
