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Investing.com - UBS has reiterated a Buy rating and $35.00 price target on Carnival Corporation (NYSE:CCL) amid investor concerns about Caribbean cruise deployments. This target represents a potential 33% upside from the current price of $26.24, aligning with the broader analyst consensus of "Strong Buy" for the $34.39 billion market cap cruise operator.
UBS analyst Robin Farley noted that while Carnival did not provide an update on business tone, the company emphasized that macroeconomic conditions typically impact pricing more significantly than changes in Caribbean deployments. InvestingPro data shows 18 analysts have revised their earnings upwards for the upcoming period, suggesting positive sentiment despite these concerns. Subscribers can access Carnival’s comprehensive Pro Research Report, part of the 1,400+ deep-dive analyses available on the platform.
Carnival plans to increase its Caribbean deployment by 7% next year, considerably lower than the 16% growth projected for the rest of the industry, resulting in an overall industry increase of 12% in the Caribbean region. As a prominent player in the Hotels, Restaurants & Leisure industry with $26.23 billion in revenue over the last twelve months, Carnival’s strategic deployment decisions carry significant weight.
This 12% growth rate is described as "a little higher than average" compared to the historical high single-digit growth rate, but "not unprecedented" according to the analyst’s assessment.
Investor concerns have centered on Norwegian Cruise Line Holdings (NCLH), which is increasing its Caribbean deployment by more than 40% in 2026, though UBS notes that Norwegian represents less than 10% of the overall Caribbean market.
In other recent news, Carnival Corporation has been the focus of several notable developments. Fitch Ratings upgraded Carnival’s Long-Term Issuer Default Ratings to investment grade ’BBB-’ from ’BB+’, citing the company’s refinancing of its 6.0% senior unsecured notes due 2029. This upgrade reflects a stable outlook for the cruise operator. Meanwhile, Wells Fargo initiated coverage on Carnival with an Overweight rating and set a price target of $37.00, based on a 13.5x multiple applied to its 2027 estimated earnings per share. Additionally, Tigress Financial Partners raised its price target for Carnival to $40.00, maintaining a Buy rating, and highlighted the company’s record-setting profitability and strong demand environment as key factors. Bernstein, however, reiterated a Market Perform rating with a $26.00 price target, noting that Carnival’s stock performance lags behind competitors like Royal Caribbean and Viking. Carnival’s management recently expressed a cautious outlook regarding the U.S. macroeconomic environment and Caribbean capacity growth, as noted by Barclays analyst Brandt Montour.
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