Why Is Norwegian Cruise Line (NCLH) Stock Soaring Today
What Happened?
Shares of cruise company Norwegian Cruise Line (NYSE:NCLH) jumped 9% in the morning session after Citi analyst James Hardiman upgraded the stock from Neutral to Buy and increased the price target from $20 to $30. The new price target indicated more than a 30% upside from where shares traded when the upgrade was announced.
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What The Market Is Telling Us
Norwegian Cruise Line’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock gained 18.7% on the news that the company reported fourth-quarter results and provided an optimistic earnings forecast for the next quarter, which blew past analysts' expectations. In addition, its revenue narrowly outperformed Wall Street's estimates during the quarter.
On the other hand, its passenger cruise days unfortunately missed, and its EPS fell short of Wall Street's estimates. Overall, this was a mixed quarter for Norwegian Cruise Line.
Norwegian Cruise Line is up 26% since the beginning of the year, and at $23.09 per share, has set a new 52-week high. Investors who bought $1,000 worth of Norwegian Cruise Line’s shares 5 years ago would now be looking at an investment worth $487.59.
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