Why Norwegian Cruise Line Stock Sank Today
Shares of Norwegian Cruise Line Holdings (NYSE: NCLH) fell 9% on Thursday after analysts warned of multiple challenges that could derail the company's path back to profitability.
Morgan Stanley analyst Thomas Allen on Wednesday slashed his price forecast for Norwegian's shares from $18 to $14. Allen is concerned about what he sees as deteriorating macroeconomic conditions that could sink the cruise industry's profits.
Norwegian was forced to incur billions of dollars of debt during the early stages of the pandemic, when its ships were unable to sail due to coronavirus-related safety measures. Fortunately, Norwegian's vessels have returned to the open water now that most of those restrictions have been lifted. But the debt remains. And the interest payments required to service that debt are weighing on the company's profit margins.
Source Fool.com
