NEW YORK (TheStreet) -- NorwegianCruiseLines (NCLH) stock is up by 3.25% to $43.84 in early afternoon trading on Friday, after Nomura said cruise line stocks should have less exposure to the Zika virus than investors think.
Due to concerns about the Zika virus, cruise stocks have dropped about 8% during the last week compared to the S&P 500's 1.3% increase, Nomura said on Friday. The Zika virus is a mosquito-borne virus that is being investigated for a possible link to birth defects in Brazil, according to the World Health Organization.
"Cruise lines have less exposure than investors perceive," the firm said in a note. "We expect Caribbean ports-of-call to aggressively spray for mosquitoes and cruise ships are already regularly treated for all types of pests."
Additionally, it is easy for cruise lines to change their destinations to a safer location, the firm added.
Now is a good opportunity to buy cruise stocks, Nomura said. Other cruise stocks such as Carnival Corp. (CCL) are also increasing Friday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rates this stock as a "buy" with a ratings score of B. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
You can view the full analysis from the report here: NCLH