NCLH - Norwegian Cruise Line Holdings: Too Cheap To Ignore

2024-07-02 07:05:11 ET

Summary

• Norwegian Cruise Line Holdings benefits from pricing strength. Q1'24 advance ticket sales reached a new post-pandemic record of $3.8B.
• The company's low P/E ratio underprices cyclical profit potential in a rising economy.
• Debt reduction efforts and strong booking trends position Norwegian Cruise Line Holdings for an upside revaluation.

Norwegian Cruise Line Holdings ( NCLH ) continued to benefit from record pricing for its ticket sales in the first-quarter, a trend that likely continued in the second-quarter as well. As a result, the cruise line company has attractive EBITDA upside in the upcoming quarters, in part because the company is applying strict cost controls. With industry projections also calling for a continual rebound in passenger numbers for ocean-going cruises in FY 2024 and the company's share being unreasonably cheap, I believe Norwegian Cruise Line Holdings has significant upside revaluation potential in FY 2024!...

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