Norwegian Cruise Line's (NCLH) new Chief Executive John Chidsey re-set expectations for this year with an updated EPS outlook and net yield pressures in key markets, BofA Securities said in a note Tuesday.

BofA said that after the company's CEO change more than two weeks ago it believed the company's "business was not progressing as planned."

After Q4 results, the company has a 2026 EPS outlook of $2.38, which is below the Visible Alpha consensus of $2.58 and the company's own target of $2.45 issued at its May 2024 investor event, the note said.

Meanwhile, in the near-term, Norwegian Cruise "sees net yield pressures in Caribbean (1Q), Alaska (2Q), and Europe (3Q) stemming from its own growth and marketing missteps," BofA said.

For the long-term, BofA expects the "new CEO to focus on both additional cost savings and a more cohesive marketing/revenue management strategy."

BofA lowered Norwegian Cruise's price target to $27 from $30, while keeping the company's neutral rating.

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