Norwegian Cruise Line stock surges after UBS turns bullish

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NCLH Stock Intrinsic Value – Norwegian Cruise Line ($NYSE:NCLH) Holdings Ltd.’s stock surged on Wednesday after UBS AG turned bullish on the cruise line company, citing stronger booking trends and pricing. UBS’s analysts moved to a “Buy” rating from Neutral for Norwegian Cruise Line Holdings, citing stronger booking occupancy trends. The Swiss bank’s analysts also said that pricing has come in above 2019 levels, as the cruise line capitalizes on pent-up demand. The company has a strong presence in North America, Europe, and Asia, and offers a wide variety of cruise itineraries.

However, as booking trends and pricing indicate, Norwegian Cruise Line Holdings is well-positioned to rebound as the industry recovers.

Market Price

NCL shares opened at $12.00 and closed at $13.00, up 11.6% from the previous day’s close. “While NCL’s share price has increased significantly in recent months, we believe there is still upside potential as the company’s fundamentals continue to improve,” Farley wrote in a note to clients. She added that NCL is “well-positioned” to benefit from the continued recovery in the cruise industry, which has been hit hard by the coronavirus pandemic. The cruise industry has been slowly recovering in recent months as more people get vaccinated and feel comfortable traveling again. NCL has been one of the biggest beneficiaries of this trend, as its strong booking trends point to continued demand for its cruises. UBS’s Farley is not the only analyst who is bullish on NCL.

However, with UBS now turning bullish on the stock, there could be even more upside potential for the company in the months ahead. Live Quote…

About the Company

VI Analysis – NCLH Stock Intrinsic Value

Norwegian Cruise Line is a global cruise company with a strong fundamentals and long term potential. The company’s financials reflect its ability to generate strong cash flows and generate value for shareholders over the long term. The intrinsic value of NCLH shares is around $261.1, calculated by VI Line.

The company’s current share price of $13.0 represents a significant discount to its intrinsic value, implying that the stock is undervalued by 95%. NCLH’s strong fundamentals and long-term prospects make it an attractive investment at its current price.

VI Peers

The company operates through three segments: Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises. It offers cruises to destinations in the Caribbean, Europe, Alaska, South America, Asia, and the Pacific. The company was founded in 1966 and is headquartered in Miami, Florida. The company’s competitors include Royal Caribbean Group, Hilton Worldwide Holdings Inc, Wyndham Hotels & Resorts Inc.

– Royal Caribbean Group ($NYSE:RCL)

Royal Caribbean Group is a cruise company that operates Royal Caribbean International, Celebrity Cruises, and Azamara Club Cruises brands. The company has a market cap of 12.55B as of 2022 and a Return on Equity of -53.73%. Royal Caribbean Group is headquartered in Miami, Florida.

– Hilton Worldwide Holdings Inc ($NYSE:HLT)

Hilton Worldwide Holdings Inc is a hospitality company that owns, leases, manages, develops, and franchises hotels and resorts. It has a market cap of 35.99B as of 2022 and a Return on Equity of -148.2%. The company was founded in 1919 and is headquartered in McLean, Virginia.

– Wyndham Hotels & Resorts Inc ($NYSE:WH)

Wyndham Hotels & Resorts Inc is a hotel and resort company that operates globally. As of 2022, the company has a market capitalization of 6.34 billion dollars and a return on equity of 30.65%. The company’s primary business is owning, operating, and franchising hotels and resorts under various brands.

Summary

She believes the recent selloff in cruise stocks, on concerns about the coronavirus outbreak, has been overdone. “While we are not convinced the virus will be contained quickly and could have a more prolonged impact on global travel than currently expected, we believe the recent sell-off in cruise stocks reflects a far too negative outlook, in our view, and creates an attractive entry point for longer-term investors,” Farley wrote in a note to clients.