Wells Fargo Raises Carnival (CCL) PT to $38 on Strong 2026 Yield Guidance and EPS Beat

Core Insights - Carnival Corporation is currently viewed as a strong investment opportunity, with Wells Fargo raising its price target to $38 from $35, maintaining an Overweight rating following the Q4 2025 earnings report [1][3] - The company reported a net income of $454 million for Q4 2025, which is 2.5 times higher than the previous year and exceeded guidance by $154 million, contributing to a historic 2025 with a 60% increase in net income over 2024 [2] - For 2026, Carnival forecasts net income to exceed $3.45 billion, representing a 12% improvement over 2025 [2] Financial Performance - Carnival achieved quarterly revenues of $6.33 billion in Q4 2025, marking a 6.60% year-over-year increase, although it fell short of Street estimates by $43.17 million [3] - The company earned $0.34 per share, beating guidance by $0.09 [3] Future Outlook - Carnival provided strong yield growth guidance, addressing investor concerns regarding 2026 yields and competition in the Caribbean [1] - Management acknowledged potential headwinds for the upcoming year, including geopolitical uncertainties affecting ship deployments and the impact of a new loyalty program on yields [3] Company Overview - Carnival Corporation operates as a cruise company providing leisure travel services across North America, Australia, Europe, and internationally, through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour & Other [4]