Forecasts for the shares of the Norwegian Cruise company have improved

The shares of the cruise operator Norwegian Cruise Line Holdings Ltd. (NCLH) have risen by over 12% over the past month. They associate the growth with positive comments from Wall Street analysts, as well as the overall favorable situation in the cruise market.

Morgan Stanley analysts changed the recommendation on Norwegian Cruise Line shares from “below market” to “neutral” and set a target price of $19. According to experts, the company is in a better position than some of its competitors because of the high demand for cruises and a smaller fleet.

Wells Fargo is also positive about Norwegian Cruise Line: the company’s analysts have set a recommendation “above the market” and a target price of $27, also pointing out that the company’s strength is a smaller, but more modern fleet, which may have a higher price bar in conditions of inflation.

Norwegian Cruise Line is gradually returning to normal operation, as can from the booking speed. In early March, the company announced the start of ticket sales for the cruise “Around the World in 180 days”, scheduled for 2024. According to the operator, they sold the tickets out in just 30 minutes. This was a record booking rate in one day, which exceeded the previous record set in September last year.

Thus, the volume of orders shows that the demand for cruises remains high, despite high inflation and concerns about a slowdown in the economy. Another positive news for the Norwegian Cruise Line is the easing of sanitary requirements for cruises by the US Centers for Disease Control and Prevention (CDC). This news partially mitigated the negative impact of rising oil prices and convinced Wall Street experts that cruise operators will return to standard operating mode, despite the rising prices for tours.