Truist analyst C. Patrick Scholes upgrades Norwegian Cruise Line Holdings stock to “Buy” on strong booking demand

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NCLH Intrinsic Value – Norwegian Cruise Line($NYSE:NCLH) Holdings stock rose sharply on Tuesday after Truist analyst C. Patrick Scholes upgraded the stock to “Buy” on strengthening booking dynamics. Scholes said that conversations with travel agency executives indicate that booking volumes have increased since the relaxation of pandemic-related restrictions and testing requirements.

He wrote that bookings grew 30% for the last three weeks of August and first week of September versus 2019 and remain up mid-single-digits in comparisons since that point with cruise operators beginning to flex pricing power. Setting Norwegian Cruise line Holdings apart and making it deserving of the new “Buy” rating and $19 price target is its power in luxury cruises.

Market Price

NORWEGIAN CRUISE LINE stock opened at $15.8 and closed at $15.2, down by 0.9% from prior closing price of 15.3. Despite the slight dip, Scholes believes that the company is seeing strong bookings and has a bright future ahead.

VI Analysis – NCLH Intrinsic Value Calculator

Company’s fundamentals reflect its long term potential, below analysis on NORWEGIAN CRUISE LINE are made simple by VI app. The intrinsic value of NORWEGIAN CRUISE LINE share is around $229.3, calculated by VI Line. Fundamentals are the key indicators of a company’s long-term potential. The VI app makes it easy to analyze a company’s fundamentals and calculate its intrinsic value. According to VI Line, the intrinsic value of a NORWEGIAN CRUISE LINE share is $229.3.

However, the stock is currently trading at $15.2, which means it is undervalued by 93%.

Summary

The global cruise industry has been hit hard by the COVID-19 pandemic, with most cruise lines suspending operations for over a year. However, bookings for Norwegian Cruise Line are up significantly, with the company seeing “strong demand” for its 2021 and 2022 cruises.