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Goldman Sachs lowered its price target on Carnival Corporation (NYSE:CCL) stock to $31 from $32 while maintaining a Buy rating on Tuesday. The firm cited recent geopolitical unrest and oil price movements as adding complexity to the cruise operator’s outlook. According to InvestingPro data, analyst targets for CCL range from $21 to $34, with the stock showing a strong 51.94% return over the past year despite its high volatility (Beta 2.58).
The investment bank expects Carnival to raise its 2025 net yield guidance despite high expectations following the stock’s run-up since April. Goldman Sachs believes Carnival will demonstrate that less-premium, shorter-duration, and closer-to-home bookings—where the company has significant exposure—are performing better than premium options. With a market capitalization of $30.59 billion and a P/E ratio of 14.54, InvestingPro analysis indicates the stock is currently trading near its Fair Value.
The firm’s data indicates a recent acceleration in booking trends for Carnival and increased searches related to Celebration Key, which opens next month. Goldman Sachs projects that Celebration Key alone will add approximately 2 percentage points to 2026 yields based on its calculations.
Goldman Sachs views Carnival’s approaching investment-grade metrics at year-end as significant, noting that the company’s deleveraging and subsequent ability to consider capital returns represent a key medium-term catalyst for the stock.
The firm expects Carnival’s commentary around 2026 bookings to be particularly important, as Goldman Sachs believes current Street estimates for that period are too conservative. The bank also highlighted that Carnival’s Europe bookings remain strong due to its focus on local passengers, contrasting with competitors reporting weakness in European itineraries for U.S. passengers.
In other recent news, Carnival Corporation has secured a new $4.5 billion multi-currency revolving credit facility, significantly enhancing its liquidity by 50% over its previous arrangement. This financial move is expected to aid in Carnival’s ongoing debt reduction efforts, with JPMorgan Chase (NYSE:JPM) Bank, N.A. acting as the administrative agent. Meanwhile, Stifel has raised its price target for Carnival to $33.00, maintaining a Buy rating due to strong booking trends and expectations for a guidance increase in the upcoming fiscal second-quarter 2025 results. HSBC has also upgraded Carnival’s stock rating from ’Reduce’ to ’Hold,’ with a new price target of $24.00, acknowledging the cruise operator’s robust booking trends and debt reduction progress.
Additionally, UBS has noted that cruise lines, including Carnival, are outperforming hotels in pricing for 2025 and 2026, suggesting a competitive edge in the travel industry. The firm’s analysis highlights a significant pricing gap favoring cruise lines over U.S. and Caribbean resorts. Carnival’s first-quarter results showed a 38% year-over-year increase in EBITDA, with a 7.3% rise in net yields, prompting the company to raise its EBITDA guidance by 2% for fiscal year 2025. These developments indicate a positive trajectory for Carnival, reflecting strong demand and financial performance in the cruise sector.
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