Norwegian Cruise Line ‘s recent rally makes the risk-reward outlook less attractive, in accordance with UBS. Analyst Robin Farley downgraded the stock to neutral from buy and cut her price goal by $5 to $19. Her latest price goal reflects an upside of twenty-two.9%. “We imagine the chance/return is skewed less favorably now,” she said in a note to clients Monday. “While we imagine the demand environment is improving, we do see some uncertainty within the outlook for NCLH’s cost performance.” Farley noted the stock notably has outperformed the S & P 500 since October and that increase is making it less attractive to purchase. The cruise line has added greater than 30%, while the broader index added over 11%. Meanwhile, Farley said there are other business fundamentals to have a look at. Specifically, she highlighted Norwegian’s recent guidance, which shows expenses are forecast to grow by 46% within the fourth quarter in comparison with the identical period in 2019. Though she said its not clear what’s driving expenses, growth is predicted to relax within the quarter. The corporate has said it was spending on marketing to fill rooms, but it surely had similar occupancy to Carnival , which spent less. She added that Norwegian has had more unit growth, but that won’t raising expectations despite the indisputable fact that it should help improve scale advantages. She also said Norwegian is feeling “pinched” by inflation greater than competitors, with it being the only real cruise line experiencing wage pressure. Farley said the corporate can also be disadvantaged compared with competitors because others sold older ships through the pandemic, which reduced advantages from Norwegian previously having the youngest fleet. The stock dropped 1.7% in premarket trading. It has slid 25.5% in 2022. — CNBC’s Michael Bloom contributed to this report.