NEW YORK (TheStreet) -- Norwegian Cruise Line (NCLH) shares are flat in pre-market trading on Tuesday after analysts at Barclays resumed coverage on the cruise line with an "overweight" rating and $53 price target. The price target represents a potential 24% upside for the stock.
Analysts at the firm are happy with the company's acquisition of Prestige Cruises for $3 billion, which the company said was an effort to add higher end cruises to its current fleet of ships.
The company named James Montague as the COO of Prestige, which was officially bought less than two weeks ago on November 19.
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TheStreet Ratings team rates NORWEGIAN CRUISE LINE HLDGS as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NORWEGIAN CRUISE LINE HLDGS (NCLH) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet."