Investing.com -- The recent decline in Norwegian Cruise Line (NYSE:NCLH) Holdings shares “has created an incredible buying opportunity,” according to Stifel analysts, who have added the stock to their Stifel Select List.

Following a 16% drop in NCLH’s stock over the past week, Stifel argues that investor concerns over demand and potential tax hikes have been exaggerated. 

“Demand/spending patterns remain strong across the industry all the way into 2026,” the analysts wrote. 

While Norwegian Cruise Line management sounded more cautious than peers, Stifel believes the company is being “overly cautious.”

Stifel’s latest analysis follows its annual South Florida Cruise Tour, which included meetings with executives from Carnival (NYSE:CCL), Royal Caribbean (NYSE:RCL), and Norwegian Cruise Line. 

The firm noted that investor interest in the event was “extremely strong,” particularly as NCLH had just reported earnings, triggering a negative market reaction.

One key area of concern among investors is said to have been the potential impact of a corporate tax increase on the cruise industry. 

However, Stifel sees these fears as overstated, stating that “demand/tax fears are massively overblown.” Instead, the firm expects Norwegian to outperform expectations, maintaining a “beat/raise narrative throughout 2025.”

Given these factors, Stifel believes the market is mispricing Norwegian’s stock at current levels.

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