Carnival price target maintained at $30 by UBS on yield guidance

Published 25/06/2025, 16:04
Carnival price target maintained at $30 by UBS on yield guidance

Investing.com - UBS maintained its Buy rating and $30.00 price target on Carnival Corporation (NYSE:CCL) stock Wednesday following the cruise operator’s quarterly earnings report. According to InvestingPro data, analyst targets for CCL range from $21 to $35, with the stock currently trading at $25.44. The company’s overall financial health score is rated as "GREAT" by InvestingPro analysts.

Carnival raised its full-year earnings per share guidance by 14 cents, closely matching its second-quarter earnings beat of 13 cents, according to UBS. The company has shown strong momentum, with InvestingPro data revealing an impressive 44% return over the past year and four analysts recently revising earnings estimates upward.

The cruise line increased its full-year net yield guidance to 5%, up 30 basis points from previous forecasts, which now incorporates the 200 basis point beat achieved in the second quarter.

UBS noted that approximately 10 basis points of full-year yield was impacted by Carnival’s addition of some fourth-quarter cruises that slightly lower average yield.

The cruise operator is maintaining its second-half yield guidance essentially unchanged at 4% growth, as the 3.8% figure using Wednesday’s second-quarter results was affected by approximately 20 basis points from the additional fourth-quarter sailings.

In other recent news, Carnival Corporation reported impressive financial results for the second quarter of 2025, surpassing both earnings and revenue expectations. The company achieved an earnings per share of $0.35, which exceeded the forecast by 45.83%, and reported revenue of $6.33 billion, surpassing the anticipated $6.21 billion. Following these strong results, Carnival raised its full-year net income guidance to $2.7 billion. Stifel has responded to Carnival’s performance by raising the company’s price target to $34 from $33, maintaining a Buy rating due to strong bookings and market performance. Stifel noted that Carnival’s 2026 booking trends are "healthy" and "upbeat," which may set higher expectations for competitors. The firm also highlighted Carnival’s trading at approximately a 9% free cash flow yield, which it described as "grossly inexpensive." Carnival’s robust performance and forward guidance suggest continued strength in the cruise industry despite recent macroeconomic challenges.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.