Miami, Florida-based Norwegian Cruise Line Holdings Ltd. (NCLH) is a cruise company that operates cruises to various destinations worldwide and offers a wide range of onboard amenities, including accommodations, diverse dining options, bars and lounges, spas, casinos, retail shopping areas, and entertainment experiences. It is valued at a market cap of $7.1 billion. 

Shares of this cruise company have lagged behind the broader market over the past 52 weeks. NCLH has declined 15.3% over this time frame, while the broader S&P 500 Index ($SPX) has soared 10.6%. Moreover, on a YTD basis, the stock is down 37.7% compared to SPX’s 5.3% decline. 

Narrowing the focus, NCLH’s underperformance becomes pronounced when compared to the Defiance Hotel, Airline, and Cruise ETF’s (CRUZ) marginal decline over the past 52 weeks and 17% fall on a YTD basis. 

On Apr. 30, shares of NCLH plunged 7.8% as the company delivered weaker-than-expected Q1 adjusted earnings of $0.07 per share and revenue of $2.1 billion. Moreover, compared to the same quarter last year, the top line declined 2.9% and adjusted EPS fell 56.3%. A decline in capacity days and a reduction in passenger air participation rates affected its sales. Additionally, its operating income decreased 8% annually to $200.9 million, primarily due to lower revenues and higher other operating expenses, though partially offset by lower operating expenses. 

Adding to the bearish sentiment, NCLH lowered its full-year 2025 constant currency net yield growth guidance to 2% to 3%, citing softening booking trends. However, the company reaffirmed its adjusted EPS guidance of $2.05, supported by anticipated benefits from additional cost-saving initiatives.

For the current fiscal year, ending in December, analysts expect NCLH’s EPS to grow 9.8% year over year to $1.80. The company’s earnings surprise history is mixed. It exceeded the consensus estimates in three of the last four quarters, while missing on another occasion.

Among the 22 analysts covering the stock, the consensus rating is a “Moderate Buy” which is based on 15 “Strong Buy,” and seven “Hold” ratings. 

This configuration is more bullish than a month ago, with 12 analysts suggesting a “Strong Buy” rating. 

On Apr. 21, Loop Capital Markets analyst Laura Champine upgraded NCLH’s rating to “Buy” and maintained its price target of $25, which indicates a 56% potential upside from the current levels. 

The mean price target of $26.77 represents a 67% upside from NCLH’s current price levels, while the Street-high price target of $38 suggests an ambitious upside potential of 137.1%.