Overview
- Norwegian Cruise Line named five new directors and four directors stepped down in a move that followed Elliott Management’s campaign for change.
- Elliott endorsed the new board and set a $56 price target for the stock, saying stronger oversight under CEO John Chidsey could unlock value.
- Chidsey, appointed just before Elliott disclosed its stake, remains in place with added scrutiny from the refreshed board that is described as Elliott-backed.
- The shares have lagged rivals this year and over the past 12 months, leaving Norwegian trading at the lowest revenue and earnings multiples in the group.
- With the cruise industry posting record revenue and peers resuming dividends, analysts argue Norwegian could consider payouts while continuing to reduce debt.