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Investing.com - UBS maintained its Buy rating and $33.00 price target on Carnival Corporation (NYSE:CCL) stock Tuesday, citing continued strength in close-in demand and onboard spending. According to InvestingPro data, the stock is trading near its Fair Value, with analyst targets ranging from $26 to $43.
The firm noted that Carnival's fiscal year net yield increase matched the third-quarter beat, essentially remaining unchanged compared to previous implied guidance.
UBS had anticipated this pattern, observing that the cruise operator's performance has been driven by last-minute bookings and higher spending by passengers once aboard ships.
Given these trends, UBS expects the same factors that boosted third-quarter results to potentially help Carnival exceed its fourth-quarter yield guidance as well.
The cruise line has benefited from strong consumer demand for travel experiences, with passengers continuing to book cruises relatively close to departure dates and spending more on onboard amenities and services.
In other recent news, Carnival Corporation reported third-quarter earnings that surpassed analyst expectations, with adjusted EBITDA exceeding consensus by 3% and adjusted EPS beating forecasts by $0.11 per share. The company attributed its strong performance to higher-than-expected ticket revenue and lower expenses in several categories. Following this, Carnival raised its guidance for 2025, signaling confidence in its future financial performance. Additionally, Carnival announced a $1.25 billion notes offering to refinance existing debt, aiming to reduce interest expenses by redeeming its current $2.0 billion notes due in 2029.
Analysts have reacted to these developments with varied outlooks. Truist Securities reiterated a Hold rating with a $31.00 price target, while Stifel maintained a Buy rating, forecasting a potential EPS of $2.50. Similarly, Goldman Sachs upheld its Buy rating with a $37.00 price target, despite noting some unexpected cost pressures projected for 2026. Bernstein SocGen Group also maintained a Market Perform rating with a $26.00 price target. These recent developments highlight Carnival's strategic financial maneuvers and the mixed analyst sentiments regarding its future prospects.
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