Norwegian Cruise Lines stock pops after upping full-year guidance

Shares of Norwegian Cruise Lines (NCLH) are rising after the company upped its full-year outlook and Mizuho lifted its guidance on the stock to Buy.

Yahoo Finance's Seana Smith and Madison Mills break down the cruise sector's latest trends following strong performances from both Norwegian and Viking (VIK).

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl

Video transcript

Line stocks rising this morning on an upward trend.

This is one month after Viking holdings did debut on the New York Stock Exchange, the Viking IP O raising $1.5 billion making it the largest public offering since last September on the exchange.

Now, Norwegian cruise lines also hiking its outlook on Monday ahead of its Investor Day presentation that we're going to be getting out later this week.

I do want to just take a quick look at how Viking has been doing since that IP O Day.

Taking a look at the stock here.

It's still up on the day.

It's looking like it's up about 1.5%.

So good move for them and then year to date, they're also up as well.

Taking a look at the one year that stock is up 15% here.

When you take a look at some of the arguments being made, at least out here when it comes to Norwegian from, they raised their outlook here to buy on that upgraded guidance that we are getting from new region.

So I think going forward just whether or not the trend that we have seen within many of these cruise lines.

Because again, many of them showing that they are cutting costs.

They're looking to capitalize on that greater than expected demand in terms of bookings, their bookings even going out to the rest of 2024 into 2025.

Some of the commentary that we've gotten out from Norwegian and its competitors here in the most recent earnings results pointing to the fact that demand will likely stay strong here for quarters to come.

But exactly what that means for the business going forward and the ability here to offset some of the higher costs that they are seeing on the inflation front is something that investors and analysts have really been diving deep into here.

But again, raised outlook from Norwegian Mizuho at least.

So that that's enough to raise their outlook on the stock to buy.