27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
For the first time since 2016, Morgan Stanley says Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) should be bought by investors despite an uncertain cruise environment.
The Analyst
ENTER TO WIN $500 IN STOCK OR CRYPTO
Enter your email and you'll also get Benzinga's ultimate morning update AND a free $30 gift card and more!
Morgan Stanley's Thomas Allen upgraded Norwegian Cruise from Equal-Weight to Overweight with a price target lifted from $58 to $62.
The Thesis
Allen's bullish stance on the cruise operator is based on three factors:
- Morgan Stanley's latest monthly survey of travel agents to better understand cruise demand is encouraging. Conversations with travel agents pointed to strong qualitative data while internet data on pricing point to solid quantitative readouts for Norwegian Cruise.
- The U.S. leisure market could see a boost from large individual tax refunds and Norwegian Cruise boasts a greater domestic exposure at 75 percent U.S. sourced than its peers.
- Management's informal 2 percent to 3 percent yield growth guidance appears conservative with upside coming from both the U.S. market and international demand, especially in China which is seeing solid demand.
Allen said Norwegian Cruise's stock suffered from a difficult 2018 where the multiple de-rated by four times due to recession and leverage concerns. Despite a 20-percent rebound since the start of 2019, shares are still attractive at 10 times next-12-months price-to-earnings ratio.
Price Action
Shares of Norwegian Cruise Line were trading higher by 1.5 percent at $52.57 Wednesday afternoon.
Related Links:
Royal Caribbean Sailing Higher After Upgrade
Barclays Upgrades Carnival, Says Cruise Lines Are Firm's 'Most Preferred Subsector'
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.