Shares of Norwegian Cruise Line got a rating upgrade from Goldman Sachs, on the firm’s outlook of solid post-pandemic rebound in demand.
Goldman Sachs analyst Stephen Grambling raised the rating on the cruise line’s shares to a buy, following neutral for the past three years. Grambling also hiked the price target on the shares to $37, which implies a 38% upside potential over the most recent closing price.
The analyst cited industry-leading capacity growth, exposure to more “aspirational customers” and “… the longest liquidity runway and lowest leverage on fully recovered EBITDA” as factors behind the rating boost.
Earlier this month, Norwegian said that it plans to resume sailings from U.S. ports starting on July 4. The Centers for Disease Control and Prevention (CDC), on the other hand, has only said that cruises can be restarted in summer but didn’t specify a restart date.