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Carnival Seen Undervalued As 6 To 12 Month Catalysts Line Up - Carnival (NYSE:CCL)
Benzingaยท2025-09-23 18:22

Core Viewpoint - Carnival Corporation (CCL) shares are experiencing an upward trend, with positive expectations ahead of the third-quarter results set to be released on September 29, 2025 [1]. Group 1: Analyst Insights - Stifel analyst Steven M. Wieczynski has reiterated a Buy rating on CCL, increasing the price forecast from $34 to $38, citing strong close-in demand and pricing as key factors for a potential earnings beat [1][2]. - Wieczynski notes that booking trends remain healthy, with no observed weakening in onboard spending, countering recent concerns about softer pricing and demand for 2026 [2]. - The analyst believes that Carnival shares are undervalued and identifies multiple positive catalysts expected over the next six to twelve months [3]. Group 2: Financial Projections - Wieczynski anticipates that 2025 yields could exceed 5.5%, which would likely result in EBITDA slightly surpassing company guidance, projecting $6.99 billion against guidance of approximately $6.9 billion [4]. - The analyst sees a viable path for Carnival to regain investment-grade status by year-end, which could facilitate capital returns through dividends or buybacks [4]. - There is potential for Carnival to refinance higher-cost borrowings into lower-cost debt, leading to significant interest savings and enhancing the equity story [5]. Group 3: Current Market Performance - As of the latest publication, Carnival shares are trading higher by 0.59%, reaching $30.89 [5].