Benzingaยท2025-06-25 15:31Core Viewpoint - Carnival Corp reported strong fiscal second-quarter results, exceeding expectations, but shares traded lower amid a challenging market environment [1][2]. Group 1: Analyst Ratings and Price Targets - Goldman Sachs analyst Lizzie Dove maintained a Buy rating and raised the price target from $31 to $33, citing significantly better-than-expected results and conservative guidance [2]. - Stifel analyst Steven M. Wieczynski reaffirmed a Buy rating and increased the price target from $33 to $34, noting gross and net revenues of $6.3 billion and $4.9 billion, respectively, which surpassed consensus estimates [4]. Group 2: Financial Performance and Guidance - Carnival's management raised full-year guidance for adjusted earnings from $1.83 per share to $1.97 per share and for adjusted EBITDA from $6.7 billion to $6.9 billion [4]. - The company indicated that 2026 bookings are approaching record levels, which may alleviate investor concerns regarding cruise demand [5]. Group 3: Market Context and Strategic Positioning - Despite a murky macro and geopolitical environment, Carnival's local European exposure and focus on drive-to/shorter itineraries from the U.S. provide a buffer against potential headwinds [3]. - Analysts highlighted the significant free cash flow generation currently being produced, which will assist in deleveraging Carnival's balance sheet [5].