Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) shares are trading higher Tuesday after activist investor Elliot Investment Management has reportedly built a stake of more than 10% in the company.
- Norwegian stock is charging ahead with explosive momentum. Why is NCLH stock surging?
Elliott Emerges As Top Shareholder, Signals Turnaround Push
According to the Wall Street Journal, Elliott, which manages more than $79 billion in assets, is expected to engage with Norwegian’s leadership to address operational and financial under-performance.
Norwegian, the world’s fourth-largest cruise operator by passenger volume, has a market value of roughly $10 billion. Shares are down about 4% year to date and fell roughly 13% in 2025. Competitors Royal Caribbean Group (NYSE:RCL) and Carnival Corp. (NYSE:CCL) have outpaced Norwegian in operational performance and stock returns.
The investment makes Elliott one of Norwegian’s largest shareholders.
The report said Elliott sees potential upside in Norwegian’s private island strategy. The company owns Great Stirrup Cay in the Bahamas, one of the largest private islands in the cruise industry. Elliott reportedly believes improvements in destination development, guest experience and financial discipline could help narrow the performance gap.
Elliott has also been privately working with Adam Goldstein, former president and COO of Royal Caribbean, as a potential board nominee, according to the report.
Shareholders face a deadline next month to nominate director candidates ahead of the company’s annual meeting.
The activist move follows a recent leadership change. Late Thursday, Norwegian said CEO Harry Sommer stepped down effective immediately. He was replaced by John Chidsey, former CEO of Subway Restaurants, who previously served on Norwegian’s board from 2013 to 2022 and rejoined last year.
Fourth-Quarter Earnings Around The Corner
Norwegian is set to report fourth-quarter earnings on March 2 before the market opens. Analysts expect earnings per share of 26 cents and revenue of $2.34 billion.
The company has beaten revenue estimates in one of the last four quarters and topped earnings per share estimates in three of the last four quarters. In its most recent quarter, reported Nov. 4, Norwegian posted earnings per share of $1.20, exceeding the consensus estimate of $1.16. Revenue came in at $2.90 billion, below the $3.02 billion estimate.
Consensus Ratings And Analyst Action
Norwegian holds a consensus rating of Buy and a consensus price target of $26.84. Recent analyst action include:
- JP Morgan analyst Matthew Boss downgraded Norwegian from an Overweight rating to a Neutral rating and lowered the price target from $28 to $20.
- Stifel analyst Steven Wieczynski maintained a Buy rating on Norwegian and lowered the price target from $32 to $31.
- Barclays analyst Brandt Montour downgraded Norwegian from an Overweight rating to an Equal-Weight rating and maintained a price target of $23.
Norwegian Shares Climb Higher
NCLH Price Action: At the time of writing, Norwegian shares are trading 6.10% higher at $22.80, according to data from Benzinga Pro.
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