Norwegian Cruise Line stock moved to claw back some losses Monday after shares received an upgrade. Elsewhere, Carnival reports Q1 results on Friday.
JPMorgan on Monday upgraded Norwegian Cruise Line Holding to overweight from neutral, following a meeting with management, The Fly reported. Norwegian executives said there was no detectable change in demand behavior despite "noise" in the macro backdrop. The firm now sees a favorable risk-reward setup for the shares. Norwegian's brands target high-end consumers, giving them positive demographics for their customer base. Management is also figuring on a 170-basis-point spread between 2025 net yields and net cruise costs.
JPMorgan kept a 30 price target on Norwegian Cruise Line stock. That was 50% above where shares ended on Friday.
Elsewhere, Tigress Financial last Tuesday said it saws a "major buying opportunity" for NCLH stock following the pullback from recent highs at the end of January. Shares have fallen about 34% from their Jan. 31 high of 29.29.
Tigress believes that accelerating revenue and cash flow growth should drive a significant increase in Norwegian's return on capital, which will drive a profit recovery and "significant shareholder value creation. The firm added that "significant upside in the shares exist."
Norwegian on Feb. 27 beat Q4 views with earnings of 26 cents per share on $2.1 billion in revenue. Analysts expected earnings of 11 cents per share on $2.09 billion in sales.
Carnival Reports Friday
Elsewhere, rival Carnival announces Q1 results early Friday. FactSet expects earnings to improve to 2 cents per share, from a loss of 14 cents per share last year. Analyst forecast a 6.3% increase in revenue to $5.75 billion.
Stifel on Friday lowered its price target for CCL stock by $4 to 34 but kept a buy rating on the shares. The bar for Carnival's earnings and guidance next week has been "massively lowered" with consumer-facing companies noting softening trends, Stifel wrote. The firm believes that cruise fundamentals remain "solid." However, it views investors as thinking that "cruise is next to fall" until hearing a tone from different consumer-focused companies. Stifel lowered estimates to account for potential erosion of onboard spending metrics.
Norwegian Cruise Line Stock, Carnival Price Action
Norwegian Cruise Line stock swung 4.5% higher Monday. Shares are down 22% in 2025and trading at their lowest level since October 2024.
Norwegian Cruise Line stock has a 21-Day ATR% of 5.65.
The average true range is a metric available on IBD's MarketSurge charting tool. It gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with ATRs of 3 or below.
Carnival shares rose 4.9% Monday. CCL stock has fallen 16% this year, back to October 2024 levels.
Carnival has a 21-day ATR of 5.13%.
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