Macquarie maintains NCLH outperform, solid consumer demand

Macquarie analysts on Friday maintained a positive outlook on Norwegian Cruise Line Holdings Ltd (NYSE:), citing robust consumer demand for cruises and a strengthened financial position due to recent refinancing efforts.

The company has effectively reduced its debt obligations, with $1.8 billion now due in 2032, a significant decrease from the $1.2 billion that was due in March 2026 and the $600 million due in February 2028.

This refinancing has lowered the debt due in 2026 and 2028 by approximately 54% and 35% respectively, which is seen as beneficial given the company’s ongoing capital expenditure commitments.

Norwegian Cruise Line Holdings has indicated that it anticipates approximately $1 billion in capital expenditures related to new ship builds, including export credit financing, for both the fiscal years 2025 and 2026.

The strong consumer interest in cruising is underscored by the fourth-quarter performance of Carnival Corporation (NYSE:LON:) in December, along with positive feedback from Black Friday and Cyber Monday sales, suggesting a continued demand for cruises into 2025.

The refinancing progress, coupled with sustained consumer interest, is expected to enhance Norwegian Cruise Line Holdings’ balance sheet.

This improvement is anticipated to support the company’s ability to invest in growth and enhancements. Macquarie analysts project that the cruise line will achieve its target leverage ratio of approximately 4 times by fiscal year 2026.

Despite these positive developments, Macquarie has left its price target for Norwegian Cruise Line Holdings unchanged at $30.

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