Update shared on28 Sep 2025
Fair value Increased 1.08%Norwegian Cruise Line Holdings’ consensus price target was modestly raised to $31.12 as analysts cite strong booking trends, improved margins, successful capital market actions lowering costs and share count, and a narrowing valuation gap versus peers, despite some concerns over future booking momentum.
Analyst Commentary
- Bullish analysts highlight strong and sustained record booking trends across all brands and regions, supporting above-consensus future EPS estimates and higher price targets.
- Recent capital market transactions, including debt refinancing and convertible bond settlements, reduce interest expense and significantly lower diluted share count, driving EPS accretion without dilutive equity issuance.
- Improving operational performance, increasing margins, and strong underlying cruise demand are cited as positive catalysts supporting the valuation and long-term share appreciation.
- Norwegian shares are viewed as undervalued relative to key peers, with some bullish analysts expecting the valuation gap with Royal Caribbean to narrow due to the company’s premium positioning and multiple upcoming catalysts.
- Cautious voices note mixed booking and pricing trends in forward quarters and potential challenges in achieving Q4 yield upside following a transitory Q3 softness, warranting some neutral stances despite improved profitability.
What's in the News
- Norwegian Cruise Line Holdings completed an $81.3 million follow-on equity offering in September 2025, following an initial filing earlier in the month (Key Developments).
- The company reaffirmed its full-year 2025 earnings guidance and projected third-quarter occupancy of 105.5% and full-year occupancy of 103.0%, based on stable operational performance (Key Developments).
- Norwegian reported Q2 2025 results with 738,635 passengers carried and 103.9% occupancy, reflecting a year-over-year decline in occupancy and passengers but continued high capacity utilization (Key Developments).
- Norwegian announced the second phase of expansion for its private Bahamas island, Great Stirrup Cay, including the opening of Great Tides Waterpark in summer 2026 and other destination enhancements by late 2025 (Key Developments).
- The company's Pride of America ship drew media attention for leaving passengers ashore in Hawaii due to a sudden tsunami warning and mandatory port departure, as reported in The New York Times (Periodicals/NYT).
Valuation Changes
Summary of Valuation Changes for Norwegian Cruise Line Holdings
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from $30.79 to $31.12.
- The Net Profit Margin for Norwegian Cruise Line Holdings has risen slightly from 13.43% to 13.81%.
- The Discount Rate for Norwegian Cruise Line Holdings remained effectively unchanged, moving only marginally from 11.89% to 12.05%.
Disclaimer
AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.