Carnival Corporation: A Buy Rating with Promising Financials and Strategic Growth Outlook

Analyst Daniel Politzer of Wells Fargo maintained a Buy rating on Carnival (CCL – Research Report), retaining the price target of $22.00.

Daniel Politzer has given his Buy rating due to a combination of factors that indicate Carnival Corporation’s solid financial performance and promising outlook. In the first quarter of 2024, Carnival exceeded its adjusted EBITDA guidance by approximately 9%, a result viewed as consistent with high investor expectations. The company’s financial strength was underpinned by a significant year-over-year increase in yields, driven by higher pricing despite lower occupancy rates, and improved cost management. Politzer also notes the sustainable current demand, with advanced bookings for 2025 showing strength and the company experiencing the longest booking curve in its history.

Furthermore, the report highlights Carnival’s strategic initiatives, such as the development of Celebration Key, which is anticipated to drive demand and cost efficiencies beginning in the second half of 2025. Despite some headwinds, such as fuel costs and foreign exchange challenges, the company’s EBITDA guidance for the fiscal year 2024 was still raised slightly. Politzer remains optimistic about Carnival’s fundamentals, citing robust trends in both the European and North American markets, the company’s accelerated debt reduction, and an attractive valuation relative to peers, which supports the Overweight rating and a price target of $22.

According to TipRanks, Politzer is a 4-star analyst with an average return of 9.3% and a 60.78% success rate. Politzer covers the Consumer Cyclical sector, focusing on stocks such as Carnival, Hyatt Hotels, and Royal Caribbean.

In another report released on March 28, Bank of America Securities also maintained a Buy rating on the stock with a $23.00 price target.

TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.

Carnival (CCL) Company Description:

Carnival Corp. engages in the operation of cruise ships. It operates through the following business segments: North America, Europe, Australia, and Asia (EEA), Cruise Support, and Tour and Other. The North America segment includes Carnival Cruise Line, Holland America Line, Princess Cruises, and Seabourn. The Europe, Australia, and Asia (EEA) segment comprises of AIDA, Costa, Cunard, P&O Cruises (Australia), P&O Cruises (UK). The Cruise Support segment represents port destinations and private islands for the benefit of its cruise brands. The Tour and Other segment operates hotel and transportation operations of Holland America Princess Alaska Tours. The company was founded in 1972 and is headquartered in Miami, FL.