After a rough patch, UBS thinks it is time for investors to load back up on shares of Norwegian Cruise Line . “We’re upgrading NCLH to purchase from neutral given the numerous improvement in bookings in its Q3 preview, showing it has caught as much as the opposite cruise lines in occupancy while still keeping price nicely ahead of 2019 levels,” wrote analyst Robin Farley in a note to clients Wednesday. The corporate pre-reported occupancy of 82% for the third quarter, up from about 65% within the previous period. This contributed to Farley raising his 2022 and 2023 earnings per share estimates for the corporate. He now expects Norwegian to lose $4.66 per share in 2022, lower than a previous forecast of a $4.97 per share loss. For 2023, he hiked his earnings per share estimate to $1.55 from $1.44. Shares of cruise firms have come under pressure in recent times as Covid-19 lockdowns shuttered business and put a damper on cruising demand. While UBS prefers shares of Royal Caribbean , Farley sees strength in Norwegian’s strong domestic customer base and its exposure to the posh segment. UBS trimmed estimates and its price goal on the stock to $15 from $18 a share, citing inflationary headwinds. The change still reflects a roughly 29% upside for the stock from Tuesday’s close. Shares are down about 44% to date in 2022 but gained greater than 4% in premarket trading Wednesday — CNBC’s Michael Bloom contributed reporting
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