11:38 AM EDT, 05/05/2026 (MT Newswires) -- Norwegian Cruise Line (NCLH) could see a prolonged turnaround after the company cut its 2026 guidance on declining yields and higher fuel costs, Morgan Stanley said in a note Tuesday.

"The sudden change in yield guidance implies a material deterioration in a short window given ~80%+ of a quarter out

is already booked,"the report said.

The company also reported $125 million in run-rate SG&A savings, including targeting marketing efficiencies, that could negatively impact its revenue, it added.

"We lower our estimates to be at low end of guidance this year &anticipate a prolonged turnaround,"the note said.

The company took ownership of missteps, but trends have decelerated across cruise, the note said, adding that effectuating change is challenging amid elevated debt levels.

Morgan Stanley cut its price target to $20 from $23 while keeping its equal-weight rating.

Price: 17.25, Change: +0.05, Percent Change: +0.26