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Investing.com - Goldman Sachs raised its price target on Carnival Corporation (NYSE:CCL) to $37.00 from $33.00 on Monday, while maintaining a Buy rating on the cruise operator’s stock. The new target represents significant upside from the current price of $30.52, with InvestingPro data showing the stock has already delivered an impressive 60% return over the past year.
The investment bank expects Carnival to report strong quarterly results, which would be the first report since June, before other cruise operators noted re-accelerating summer trends and before the opening of Celebration Key. According to InvestingPro data, Carnival maintains a "GREAT" overall financial health score, with particularly strong metrics in growth and profitability.
Goldman Sachs anticipates Carnival will beat its third-quarter guidance, helped by favorable fuel and foreign exchange movements over recent months, and suggests positive booking commentary for 2026 would address concerns about recent discounting and booking windows.
The firm identified two key factors supporting its bullish view: Carnival’s potential to reach investment grade metrics by year-end, which could catalyze capital returns, and the belief that Wall Street’s 2026 estimates remain too conservative.
Goldman Sachs specifically noted that Celebration Key alone could contribute approximately 2 percentage points to 2026 yields according to their estimates, leading the firm to raise its financial projections across the board. With analyst consensus remaining bullish and targets ranging from $26 to $43, investors can access deeper insights and 8 additional key ProTips through InvestingPro’s comprehensive research report.
In other recent news, Carnival Corporation has announced plans to redeem approximately $322 million of its 5.750% senior unsecured notes due in 2027. The redemption is set for August 29, 2025, at a price equal to 100% of the principal amount, plus applicable premiums and accrued interest. Additionally, Melius Research has raised its price target for Carnival to $36, maintaining a Buy rating, citing the company’s ongoing turnaround progress. TD Cowen has also initiated coverage on Carnival with a Buy rating and the same price target of $36, noting the company’s focus on yield optimization and margin improvement. Meanwhile, luxury cruise operator Seabourn, a part of Carnival Corporation, announced that its vessel Seabourn Encore will sail Alaska and British Columbia waters for the first time during the 2026 season. This program will include 17 seven-day sailings and one eight-day voyage, visiting both popular and less-traveled destinations. These developments reflect Carnival’s strategic financial moves and operational expansions.
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