A strong year and outlook for the cruise industry has Goldman Sachs forecasting more gains for Norwegian Cruise Line Holdings in 2025. Analyst Lizzie Dove upgraded the stock to buy from neutral. She also raised her price target to $35 from $29, indicating shares can advance 34.8% from Monday’s close. Year to date, Norwegian Cruise Line shares have soared 51% compared to the S & P 500’s 26.9% rise. Nonetheless, the stock’s valuation is still well below pre-Covid levels, according to Dove. NCLH .SPX YTD mountain NCLH vs SPX in 2024 “We believe it is a better business today and warrants a higher multiple to begin to close the gap to RCL,” Dove wrote in a research note on Tuesday. Momentum in the cruise industry is set to continue, Dove added, with new passengers rising more than 10% on a yearly basis. Demand also remains higher than supply, which has given cruise companies pricing power, the analyst added. “Ultimately, we think each of the cruise stocks can work for different reasons this year and we upgrade NCLH to Buy,” Dove said. To be sure, there are some risks to Dove’s outlook. “Large supply increases over a short period could erode NCLH’s pricing power. Sustained increases in the price of bunker fuel along with general volatility could reduce NCLH’s ability to improve margins and meet financial obligations,” she said. Norwegian Cruise Line shares popped more than 3% Tuesday during premarket trading. Analysts are generally bullish on the stock. LSEG data shows that 12 of 22 analysts covering the airline rate it as a buy or strong buy. The average analyst price target also implies upside of more than 11%.