Carnival (US:CCL) ZACKSยท2025-07-14 14:46Core Insights - Carnival Corporation & plc (CCL) shares have increased by 20.3% in the past month, outperforming the Zacks Leisure and Recreation Services industry's growth of 11.8% and the S&P 500's growth of 3.7% [1][2] Financial Performance - Carnival has achieved record-breaking earnings, with EBITDA rising 26% year over year and net income more than tripling [6] - The company has met its 2026 financial targets 18 months ahead of schedule, indicating strong commercial execution and operational discipline [6] - For fiscal 2025, Carnival raised its adjusted EBITDA forecast to approximately $6.9 billion, up from $6.7 billion, reflecting over 10% year-over-year growth [13] Demand and Pricing - Net yields increased by 6.5% in the fiscal second quarter, driven by strong ticket pricing and onboard spending [7] - 93% of 2025 capacity is already booked at historically high prices, indicating strong demand and pricing power [8] Strategic Developments - The anticipated July debut of Celebration Key is expected to generate strong consumer interest and command pricing premiums [10] - Carnival is modernizing its fleet with the AIDA Evolution program and launching new ships with family-friendly amenities [11] Analyst Sentiment - Analysts maintain a positive outlook on Carnival, with an average price target of $30.04, suggesting a potential upside of 4.8% from the last closing price [23] - The company holds an average brokerage recommendation of 1.60, indicating a favorable outlook [24] Stock Valuation - Carnival stock is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 13.40X, below the industry average of 19.79X, presenting an attractive investment opportunity [17]