Citi upgrades Norwegian Cruise Line to 'buy' on growth trajectory, cost focus

Citi Trends

09/10/2024 15:24

(Updates)
    ** Norwegian Cruise Line's  NCLH.N  shares rise ~8% to a
15-month high of $22.45 in early trade
    ** Brokerage Citi upgrades stock to "buy" from "neutral" 
and raises PT to $30 from $20 
    ** Also hikes PT on peers Royal Caribbean  RCL.N  to $253
from $204 and for Carnival  CCL.N  to $28 from $25, maintains
ratings
    ** RCL shares hit an all-time high, up ~3% to $189.60; CCL
jumps ~5%, at its highest levels since Dec. 22
    ** Citi expects NCLH's pricing opportunities won't be offset
by rising costs due to its focus on cost control
    ** NCLH and RCL to grow capacity by 6% annually over next
three years - brokerage
    ** Brokerage expects RCL to announce long-term growth plan
in next 1-2 quarters and aim for similar growth and cost-cutting
efforts as NCLH
    ** Investors perceive CCL as slowest growing among cruise
companies, but its slow revenue growth can be countered by debt
and interest reduction - Citi
    ** As of last close stocks of CCL, NCLH, RCL and up ~2%, ~4%
and ~41% YTD, respectively

 (Reporting by Neil J Kanatt in Bengaluru)
 ((Neil.JKanatt@thomsonreuters.com))