Cruise Stock Climbs on Goldman Sachs Upgrade

There is still plenty of room for more bull notes

Deputy Editor
Apr 21, 2021 at 9:24 AM
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The shares of Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) are up 1.6% to trade at $27.18 at last check, after Goldman Sachs upgraded the stock to "buy" from "neutral." The analyst in coverage believes the global cruise name could see a bounce, citing several reasons it is a leader within its sector, including capacity growth. Berenberg also chimed in with a bull note of its own, hiking its price target to $25 from $22. 

NCLH has seen some volatility on the charts of late, most recently faltering from an early-April peak. With support from the 120-day moving average, today's pop could have Norwegian Cruise stock beginning its rebound. Year-over-year, the equity is up 132.8%. 

There is still plenty of room for further optimism amongst the brokerage bunch, as coming into today, seven of the 12 analysts in coverage carried a "hold" or worse rating, with the remaining five a "strong buy." Meanwhile, rising short interest now represents 21.2% of the security's available float, or over two days to cover at NCLH's average pace of trading.  

Over in the options pits, 34,708 calls and 10,063 puts have been bought in the last 10 days. Now could be a good time to weigh in on the stock's next move with options. This is per NCLH's Schaeffer's Volatility Index (SVI) of 62%, which stands higher than just 6% of readings in its annual range. This implies options players are pricing in low volatility expectations at the moment.


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