Investment firm Stifel has updated its outlook on Norwegian Cruise Line Holdings, lowering its price target from $26 to $25 while maintaining a "Buy" rating. This adjustment is primarily driven by the company's second reduction in its full-year 2026 earnings guidance.

Norwegian Cruise Line reported second-quarter earnings with adjusted earnings per share (EPS) of $0.48, surpassing the market consensus of $0.38. However, the company simultaneously revised its full-year adjusted EPS forecast down to approximately $1.50, below analysts' average expectation of $1.67. Stifel expressed disappointment in the second guidance cut within the year.

According to the firm, to regain investor confidence, Norwegian Cruise Line must deliver third-quarter 2026 results that exceed current guidance and must avoid any further reduction to its fourth-quarter outlook. Analysts noted that investors currently lack trust in the company's estimates and will not engage with its recovery story until they are convinced that future performance has only upside potential. Stifel estimates 2027 earnings growth to be around 1%-2%, which it considers conservative, with any future improvement relying entirely on yield growth.

The weak performance outlook stems from multiple pressures. Norwegian Cruise Line's own brand faces operational execution challenges and demand headwinds from the Middle East conflict. Additionally, rising fuel costs have intensified earnings pressure. In response, the company is actively implementing cost-cutting initiatives. Building on the $125 million in annualized savings announced last quarter, it has secured an additional $100 million in cost savings, primarily through measures such as technology vendor consolidation.