By Callum Keown
Norwegian Cruise Line stock fell 6% early Friday after the cruise operator announced a new CEO and the shares got a downgrade.
Norwegian said former Subway Restaurants CEO John Chidsey, a company director, has succeeded Harry Sommer at the helm with immediate effect, in a statement late Thursday. It said Chidsey has a proven record of leading global, consumer-facing companies through transformation.
The stock has underperformed its competitors, falling 16% over the past year, compared to Royal Caribbean's 27% rise and Carnival's 23% gain.
J.P. Morgan analyst Matthew Boss downgraded the stock to Neutral from Overweight in a note late Thursday. His price target fell to $20 from $28. Boss said the bank was lowering its assumption for Norwegian's first-quarter net yield growth for the third time, citing its own research.
He added that J.P. Morgan's own tracker had noticed an increase in promotional activity from Norwegian -- both in frequency and the depth of discounts. The bank also lowered its full-year margin outlook.
Truist analyst C. Patrick Scholes said that while the CEO departure wasn't a 100% surprise, "there was not a particularly loud drumbeat from angry investors and/or activists demanding action from the board."
He did, however, note that Norwegian's operations and financial performance have lagged its peers. Scholes maintained a Buy rating with a price target of $26.
Write to Callum Keown at callum.keown@dowjones.com
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February 13, 2026 11:04 ET (16:04 GMT)
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