UPDATE: Nomura Upgrades Norwegian Cruise Line Holdings to Buy on Growth Outlook
Nomura upgraded Norwegian Cruise Line Holdings (NASDAQ: NCLH) from Neutral to Buy and raised the price target from $30.00 to $35.00.
Nomura noted, "When we initially rated NCLH Neutral on 1/23/13, our thesis was that the stock‟s 41% rise from its IPO price of $19 adequately reflected the company‟s earnings power through 2014. Last night‟s 4Q12 earnings release and 2013 yield outlook indicate stronger pricing power and earnings momentum than we had thought. In 18 months, we now believe the stock can reach $38.50, discounted back to a 12-month target of $35/share, 23% above NCLH‟s after-market indication. NCLH‟s yield guidance range of 3.5%-5.5% is probably stronger than most investors thought likely. From 2012 through 2015, we estimate NCLH‟s CAGR EPS in excess of 50% owing to its outsized unit growth, rising margins, and pricing power."
Norwegian Cruise Line Holdings closed at $27.68 on Monday.
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