Norwegian Cruise Line (NYSE:NCLH) Rating Lowered to Strong Sell at Zacks Research

Norwegian Cruise Line (NYSE:NCLH) was downgraded by analysts at Zacks Research from a “hold” rating to a “strong sell” rating in a research note issued to investors on Tuesday,Zacks.com reports. Zacks Research also issued estimates for Norwegian Cruise Line’s Q3 2026 earnings at $0.84 EPS, Q4 2026 earnings at ($0.15) EPS, FY2026 earnings at $1.30 EPS, Q1 2027 earnings at ($0.02) EPS, Q2 2027 earnings at $0.37 EPS, Q3 2027 earnings at $0.93 EPS, Q4 2027 earnings at $0.03 EPS, FY2027 earnings at $1.31 EPS, Q1 2028 earnings at $0.06 EPS, Q2 2028 earnings at $0.50 EPS and FY2028 earnings at $1.74 EPS.

NCLH has been the subject of a number of other research reports. TD Cowen raised their price objective on Norwegian Cruise Line from $22.00 to $24.00 and gave the stock a “buy” rating in a research report on Tuesday, June 23rd. Jefferies Financial Group upped their price objective on shares of Norwegian Cruise Line from $16.00 to $18.00 and gave the stock a “hold” rating in a research note on Friday, July 17th. UBS Group raised their target price on Norwegian Cruise Line from $17.00 to $20.00 and gave the company a “neutral” rating in a research note on Tuesday. The Goldman Sachs Group raised their price target on shares of Norwegian Cruise Line from $14.00 to $16.00 and gave the company a “neutral” rating in a report on Tuesday, July 14th. Finally, JPMorgan Chase & Co. cut their target price on shares of Norwegian Cruise Line from $19.00 to $18.00 and set a “neutral” rating on the stock in a research report on Monday, April 27th. One equities research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, fifteen have issued a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $21.05.

Norwegian Cruise Line Stock Down 1.6%

NCLH stock opened at $17.33 on Tuesday. Norwegian Cruise Line has a 52-week low of $14.53 and a 52-week high of $27.18. The company has a debt-to-equity ratio of 5.40, a current ratio of 0.20 and a quick ratio of 0.17. The stock has a market capitalization of $7.95 billion, a price-to-earnings ratio of 10.83, a price-to-earnings-growth ratio of 1.12 and a beta of 1.90. The company has a 50-day moving average of $19.66 and a two-hundred day moving average of $19.72.

Norwegian Cruise Line (NYSE:NCLH) last announced its earnings results on Thursday, July 30th. The company reported $0.48 earnings per share for the quarter, beating the consensus estimate of $0.41 by $0.07. Norwegian Cruise Line had a return on equity of 41.38% and a net margin of 7.49%.The firm had revenue of $2.64 billion during the quarter, compared to the consensus estimate of $2.65 billion. During the same quarter in the prior year, the company earned $0.51 EPS. The firm’s revenue for the quarter was up 4.9% compared to the same quarter last year. Norwegian Cruise Line has set its Q3 2026 guidance at 0.900-0.900 EPS and its FY 2026 guidance at 1.500-1.500 EPS. As a group, equities research analysts anticipate that Norwegian Cruise Line will post 1.41 EPS for the current year.

Insider Activity at Norwegian Cruise Line

In related news, Director Stephen G. Pagliuca acquired 695,000 shares of the stock in a transaction dated Monday, June 1st. The stock was bought at an average price of $18.16 per share, with a total value of $12,621,200.00. Following the completion of the transaction, the director directly owned 703,912 shares of the company’s stock, valued at approximately $12,783,041.92. The trade was a 7,798.47% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CEO John Chidsey bought 153,000 shares of the stock in a transaction on Friday, May 22nd. The shares were purchased at an average price of $16.37 per share, with a total value of $2,504,610.00. Following the acquisition, the chief executive officer owned 1,139,940 shares in the company, valued at approximately $18,660,817.80. This represents a 15.50% increase in their position. The SEC filing for this purchase provides additional information. Insiders bought 1,533,000 shares of company stock valued at $27,496,910 in the last quarter. Corporate insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On Norwegian Cruise Line

Several hedge funds have recently modified their holdings of NCLH. New Mexico Educational Retirement Board grew its stake in shares of Norwegian Cruise Line by 9.2% in the second quarter. New Mexico Educational Retirement Board now owns 22,600 shares of the company’s stock valued at $477,000 after buying an additional 1,900 shares in the last quarter. Public Employees Retirement System of Ohio bought a new position in shares of Norwegian Cruise Line during the second quarter worth approximately $2,758,000. Handelsbanken Fonder AB increased its position in Norwegian Cruise Line by 19.2% during the 2nd quarter. Handelsbanken Fonder AB now owns 149,000 shares of the company’s stock worth $3,145,000 after buying an additional 24,000 shares during the period. Czech National Bank raised its stake in Norwegian Cruise Line by 5.4% in the 2nd quarter. Czech National Bank now owns 130,680 shares of the company’s stock worth $2,759,000 after purchasing an additional 6,693 shares in the last quarter. Finally, M.E. Allison & CO. Inc. raised its position in shares of Norwegian Cruise Line by 28.2% in the second quarter. M.E. Allison & CO. Inc. now owns 140,510 shares of the company’s stock valued at $2,966,000 after buying an additional 30,900 shares in the last quarter. Institutional investors own 69.58% of the company’s stock.

Norwegian Cruise Line News Roundup

Here are the key news stories impacting Norwegian Cruise Line this week:

• Positive Sentiment: Management is pursuing cost reductions, a brand overhaul and a broader 2027 recovery plan. These initiatives could improve bookings, pricing and profitability if the company can correct prior marketing and revenue-management mistakes. NCLH Q2 deep dive
• Neutral Sentiment: Second-quarter revenue broadly met Wall Street expectations, but management said European demand and the booked position remain weak. CEO John Chidsey characterized the challenges as “self-inflicted,” making execution of the recovery strategy a key investor focus. Top analyst questions from NCLH’s earnings call
• Negative Sentiment: Mizuho downgraded NCLH from Outperform to Hold and reduced its price target from $22 to $17, citing rising leverage and potential funding needs over the next 18 months. Mizuho downgrade
• Negative Sentiment: Zacks Research downgraded Norwegian Cruise Line from Hold to Strong Sell after cutting estimates across 2026–2028. Its FY2026 EPS forecast fell to $1.30 from $1.51, FY2027 to $1.31 from $1.65, and FY2028 to $1.74 from $1.99. Zacks also lowered quarterly forecasts, including a projected Q4 2026 loss of $0.15 per share. Zacks Research downgrade and estimates
• Negative Sentiment: The company’s Q3 net yield is expected to decline 8.9%, increasing pressure on the 2027 recovery. Falling yields, softer bookings and high debt create a difficult backdrop even though the shares trade at a valuation discount. NCLH Q3 net yield decline

About Norwegian Cruise Line

Norwegian Cruise Line Holdings Ltd. (NYSE: NCLH) is a global cruise operator offering a portfolio of premium brands that includes Norwegian Cruise Line, Oceania Cruises and Regent Seven Seas Cruises. The company provides sea voyages and related onboard services such as dining, entertainment, shore excursions and destination experiences. Its fleet of modern vessels sails to more than 400 destinations across all seven continents, serving leisure travelers with itineraries ranging from short Caribbean getaways to extended world voyages.

Founded in 1966 by Knut Kloster and Ted Arison, the company pioneered the concept of “Freestyle Cruising,” which allows passengers greater flexibility in dining schedules, entertainment choices and onboard activities.