Bernstein reiterates Market Perform rating on Carnival stock at $26

Investing.com - Bernstein maintained its Market Perform rating and $26.00 price target on Carnival Corporation (NYSE:CCL) on Tuesday. According to InvestingPro data, this target sits at the lower end of analyst estimates, which range from $26 to $43, with the stock currently showing signs of being undervalued based on Fair Value analysis.

The cruise operator’s stock has gained 11% in 2025, tracking in line with the broader market index but lagging behind its direct competitors Royal Caribbean (+32%) and Viking (+32%). The company maintains a "GREAT" Financial Health score on InvestingPro, trading at an attractive P/E ratio of 14.5x with a robust gross profit margin of 55%.

Bernstein noted that while Carnival has benefited from strong industry-wide top-line momentum, these gains have been partially offset by cost concerns and uncertainty about the company’s 2026 outlook.

The research firm identified a balance of structural and company-specific headwinds against positive industry dynamics for the cruise operator.

Carnival stock’s 2025 performance, while positive, trails significantly behind its closest competitors in the cruise sector despite the overall strength in travel demand.

In other recent news, Carnival Corporation has reported significant developments that may interest investors. The company announced better-than-expected third-quarter results, prompting UBS to raise its price target for Carnival to $35 while maintaining a Buy rating. Fitch Ratings upgraded Carnival’s Long-Term Issuer Default Ratings to investment grade ’BBB-’ from ’BB+’, reflecting the company’s refinancing efforts and improved financial stability. Additionally, Carnival has priced a private offering of $1.25 billion in 5.125% senior unsecured notes due 2029, intending to use the proceeds to redeem $2 billion of its 6.000% senior unsecured notes, aligning with its strategy to reduce interest expenses.

S&P Global Ratings has revised Carnival’s outlook to positive from stable, citing strong bookings and improved financial metrics. Despite these positive developments, Bernstein has reiterated its Market Perform rating with a $26 price target, expressing concerns about the company’s 2026 outlook. Carnival reports that 50% of its 2026 capacity is already booked at higher prices, and 2027 bookings have started positively. These recent developments highlight Carnival Corporation’s ongoing efforts to strengthen its financial position and capitalize on favorable market conditions.

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