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Investing.com - Stifel has reiterated its Buy rating and $38.00 price target on Carnival Corporation (NYSE:CCL) despite a recent selloff following the cruise operator’s earnings report. According to InvestingPro data, seven analysts have recently revised their earnings estimates upward, with the stock showing a notably low PEG ratio of 0.23.
The cruise line reported what Stifel described as a "solid beat" with positive forward-looking commentary extending as far as 2027, though shares declined after the announcement. The company, currently valued at $38.16 billion, has demonstrated strong financial performance with a "GREAT" overall health score on InvestingPro.
Stifel expressed confidence in Carnival’s booking strength for 2026, suggesting earnings per share could exceed $2.50 next year if current trends continue and the company benefits from favorable fuel costs, foreign exchange rates, and debt reduction.
The research firm noted that commentary around 2026 and early 2027 bookings "remains encouraging" with no visible signs of slowing demand or consumer spending in the cruise sector.
Stifel views Carnival shares as undervalued based on expected free cash flow generation and recommended using the recent selloff as "a tactical long-term buying opportunity."
In other recent news, Carnival Corporation reported strong third-quarter earnings for 2025, surpassing Wall Street expectations. The cruise line achieved an earnings per share of $1.43, exceeding the forecasted $1.32, and reported revenue of $8.2 billion, slightly above the anticipated $8.09 billion. Despite these positive results, the company faced market concerns about cost pressures projected for 2026. Goldman Sachs maintained its Buy rating and $37 price target on Carnival, acknowledging the company’s traditionally conservative forecasting approach. Similarly, Mizuho reiterated its Outperform rating and the same price target, noting market concerns about pricing and hedge fund positioning. Both firms recognized the strong earnings performance but highlighted potential challenges ahead. These developments reflect the mixed sentiment among investors and analysts regarding Carnival’s future financial outlook.
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