JPMorgan has upgraded Norwegian Cruise Line (NCLH) to an overweight rating from neutral, predicting a 56% upside potential. The firm’s analyst, Matthew Boss, expressed confidence in the company’s prospects despite concerns about consumers’ spending habits.
According to Boss, management reported no change in demand behavior despite macroeconomic headwinds. Booking curves and cancellation rates remained stable, indicating no irregular patterns in consumer behavior. The industry is insulated from other travel sectors like airlines and lodging due to its unique selling points: a 30-35% value gap compared to land-based alternatives and an experience gap driven by better ship hardware and private island destinations.
The upgrade led to a significant price gain for Norwegian shares, which rose over 4% following the announcement. Most analysts are bullish on the stock, with 14 of 23 covering it rating it a buy or strong buy. The company’s CFO cited these advantages as key drivers of its success.
Source: https://www.cnbc.com/2025/03/17/jpmorgan-upgrades-this-cruise-stock-sees-more-than-55percent-upside-ahead.html