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Investing.com - Stifel raised its price target on Carnival Corporation (NYSE:CCL) to $38.00 from $34.00 on Tuesday, while maintaining a Buy rating on the cruise operator’s stock. The target sits well within the current analyst range of $26 to $43, according to InvestingPro data, which shows the stock trading at $30.71 with a market cap of nearly $40 billion.
The research firm expects Carnival to beat expectations and raise guidance when it reports financial results on September 29, citing continued strong close-in demand and pricing. Stifel noted it has not observed any deterioration in onboard customer spending patterns. This optimism appears supported by Carnival’s impressive performance, with InvestingPro data showing a 61.9% stock return over the past year and robust revenue of $26 billion in the last twelve months.
Stifel dismissed recent market concerns about erosion in 2026 pricing and demand, as well as increased promotions, stating these worries appear unfounded based on conversations with travel agents and cruise operators.
The firm believes Carnival shares remain undervalued with upside potential driven by several positive catalysts expected over the next six to twelve months. Stifel highlighted the significant free cash flow generation that will help reduce Carnival’s debt and potentially restore its investment-grade status. InvestingPro analysis shows the company maintains a "GREAT" Financial Health score, with particularly strong marks in growth and profitability metrics.
The new $38 price target represents 16 times Stifel’s 2027 earnings per share estimate for Carnival, with the firm noting it had adjusted its estimates higher after determining its previous projections were too conservative.
In other recent news, Carnival Corporation is drawing attention with a series of notable developments. Analysts from BofA Securities and Goldman Sachs have both reiterated their Buy ratings on Carnival, with price targets set at $38 and $37, respectively. These updates come as Carnival prepares for its third-quarter 2025 earnings report, with analysts expecting strong results. Additionally, Melius Research has raised its price target for Carnival to $36, citing progress in the company’s ongoing turnaround.
In financial maneuvers, Carnival announced plans to redeem approximately $322 million of its 5.750% senior notes due in 2027, with the redemption set for August 29, 2025. Meanwhile, Seabourn, a part of Carnival Corporation, revealed that its vessel, Seabourn Encore, will venture into Alaska and British Columbia waters for the first time during the 2026 season. This expansion includes 17 seven-day sailings and one eight-day voyage, visiting both popular and remote destinations. These developments reflect the company’s strategic moves and market confidence, drawing attention from investors and analysts alike.
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