Mizuho downgraded Norwegian Cruise Line Holdings (NCLH) from Outperform to Neutral. The bank lowered its price target for the stock to $17 from $22.
Analysts cited concerns regarding rising leverage and potential funding shortfalls over the next 18 months. The company faces internal challenges including accelerated supply, shifting customer segmentation, and personnel changes. Macroeconomic headwinds also impact the cruise operator's current turnaround efforts.
Mizuho expects the shares to trade sideways for the next 6 to 12 months. Zacks Research recently lowered its Q3 2026 earnings per share estimates for the company. Mizuho remains positive on the broader cruise sector despite the specific downgrade.