UPDATE: Deutsche Bank Initiates Norwegian Cruise Line Holdings at Hold on Fair Risk/Reward

Deutsche Bank initiated coverage on Norwegian Cruise Line Holdings

with a Hold rating and a $34.00 price target. Deutsche Bank noted, "While we find many aspects of the NCLH story appealing, namely the 1) outsized yield growth in the near to medium-term stemming from an aggressive capacity expansion program, 2) accelerating operating margin growth given cost savings initiatives, and 3) strong free cash flow; the strong run in shares post IPO (+63% versus S&P +2%) and current valuation leave us believing the current risk-reward is balanced. That said, we would seek to be opportunistic on pullbacks given our $34 target implies 9% upside from current levels." Norwegian Cruise Line Holdings closed at $30.98 on Thursday.