BofA Securities raises Carnival stock price target on strong earnings

Published 25/06/2025, 11:02
© Reuters.

Investing.com - BofA Securities raised its price target on Carnival Corporation (NYSE:CCL) stock to $31.00 from $30.00 on Monday, while maintaining a Buy rating following the cruise operator’s strong second-quarter 2025 results.

The cruise line reported better-than-expected earnings for the quarter, prompting BofA to increase its 2025 earnings per share estimate by 6% to $1.98 and its EBITDA forecast by 3% to $6,888 million.

BofA highlighted that Carnival maintained its second-half 2025 net yield outlook despite macroeconomic volatility, suggesting continued confidence in its booking trends and pricing power.

The firm noted several positive catalysts for Carnival, including the upcoming opening of Celebration Key next month, which could drive further net yield growth, and ongoing debt reduction efforts that strengthen the company’s balance sheet.

BofA also pointed to Carnival’s current valuation of 8.7 times 2025 estimated EBITDA, representing an 11% discount to historical levels, while its new price target is based on the cruise line’s long-term historical multiple of approximately 9.5 times.

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