11:21 AM EST, 03/05/2024 (MT Newswires) -- Norwegian Cruise Line Holdings' ( NCLH ) 2024 guidance was "better than feared" but questions remain about the company's growth compared to peers, Morgan Stanley said.

The investment firm increased its estimates for Norwegian Cruise Line's ( NCLH ) near-term net yield growth with a small reduction in net cruise costs but said the changes to 2024 estimates were backed by cost control, particularly in Q1 "where visibility is high." .

Continued cost control is expected to be offset by softer year-over-year net yields and the firm's 2025 and 2026 estimates remain largely unchanged, Morgan Stanley said.

The firm anticipates potential revenue risks if Norwegian Cruise Line ( NCLH ) maintains flat core net cruise costs for an extended time to uphold service standards for upscale consumers.

Norwegian Cruise earnings may surpass peers due to its leverage, but slower EBITDA growth and high leverage do not "justify the premium valuation relative to history and peers," Morgan Stanley added.

The firm raised the price target on Norwegian Cruise to $15 from $14 and maintained its underweight rating.

Price: 19.35, Change: -0.08, Percent Change: -0.39