Stifel pounded the table on Tuesday that Norwegian Cruise Line Holdings (NYSE:NCLH) is a stock that investors in the leisure sector may not want to let get away.
Analyst Steven Wieczynski said the risk-reward profile on NCLH seems compelling at current levels and recommends using the recent weakness as a long-term buying opportunity. The firm’s confidence is based in part in recent interactions with the cruise line operator’s management team.
The NCLH breakdown: “We recently had the chance to spend a significant amount of time with management (CEO/ CFO) onboard their newest ship, Norwegian Prima. Post our time with management, we feel comfortable enough to significantly raise our 2023/2024 EBITDA estimates based on continued strength in booking/pricing patterns.”
More: “We sense bookings have materially accelerated over the past couple weeks as COVID restrictions were removed/lowered and cancellation rates are now back to normal, if not below. Pricing is up 20%+ over 2019 and NCLH management remains committed to holding price in the near-term at the expense of sacrificing some occupancy.”
NCLH’s pricing philosophy is seen pushing customers to book early in order to capture the best price possible which will help elongate the booking curve leading to improved visibility and accelerated cash inflows.
Stifel has a Buy rating on NCLH and price target of $26 vs. the average analyst price target of $19.44.
Image and article originally from seekingalpha.com. Read the original article here.