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Mizuho (NYSE:MFG) maintained its Outperform rating and $33.00 price target on Carnival Corporation (NYSE:CCL) Wednesday, currently trading at $23.28 with a market capitalization of $27.5 billion. According to InvestingPro data, analysts’ targets range from $21 to $34, while adjusting estimates to account for currency and fuel tailwinds alongside potential booking softness.
The research firm noted that while foreign exchange rates and fuel prices are providing positive tailwinds to estimates for both the second quarter and full fiscal year, it has moved overall estimates lower to reflect what was "likely a softer booking period in April given significant market volatility." Despite these concerns, InvestingPro analysis shows the company maintains a GOOD financial health score, with strong revenue growth of 12.66% over the last twelve months.
Mizuho highlighted that Carnival reported earnings on March 21, ahead of its industry peers, and the firm is taking a conservative approach by slightly lowering estimates based on broader industry commentary and macroeconomic uncertainty.
Despite these adjustments, Mizuho remains "constructive" on Carnival, suggesting that booking trends have largely recovered. The firm also noted that Carnival did not fully incorporate the near-term strength it was seeing when exiting the first quarter, which should "presumably provide a buffer to guidance."
Mizuho expressed particular interest in current booking pace and pricing trends ahead of Carnival’s second-quarter results, due in 6 days, and characterized the stock as "very compelling" at 7.4 times its 2026 estimated EBITDA using forward net debt. The stock currently trades at a P/E ratio of 13.1, and InvestingPro analysis indicates the stock is currently undervalued based on its Fair Value model, with 6 additional exclusive insights available to subscribers.
In other recent news, Carnival Corporation has secured a new $4.5 billion multi-currency revolving credit facility, enhancing its liquidity significantly. This new arrangement represents a 50% increase over its previous credit facility and includes an option for an additional $1.0 billion in commitments. Meanwhile, Goldman Sachs has lowered its price target for Carnival from $32 to $31, maintaining a Buy rating. The firm cited geopolitical unrest and oil price fluctuations as factors complicating Carnival’s outlook, yet noted strong booking trends and potential yield improvements in 2026. Stifel has raised its price target for Carnival to $33, citing strong demand and healthy booking patterns, and expects the company to increase its full-year guidance in its upcoming fiscal second-quarter results. Additionally, UBS has highlighted the cruise industry’s pricing power compared to hotels, noting that cruise lines like Carnival are maintaining competitive pricing advantages. These developments indicate a dynamic period for Carnival Corporation as it navigates financial strategies and market conditions.
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