Carnival stock price target raised to $30 from $28 at Citi on strong results

Published 25/06/2025, 12:00
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Investing.com - Citi raised its price target on Carnival Corporation (NYSE:CCL) to $30.00 from $28.00 while maintaining a Buy rating following the cruise operator’s strong quarterly performance.

Carnival shares rose approximately 7% on Tuesday, outperforming the S&P 500’s 1% gain, after the company reported better-than-expected second-quarter results and raised its full-year guidance. The cruise line delivered record second-quarter Adjusted EBITDA of $1.51 billion, exceeding both consensus estimates of $1.37 billion and the company’s own guidance of $1.32 billion.

The outperformance stemmed from improved pricing power and better cost management, with some expenses shifting between quarters. Carnival raised its full-year Adjusted EBITDA guidance to $6.9 billion from $6.7 billion, surpassing previous analyst expectations of $6.8 billion. The $200 million increase exceeded the second-quarter beat of $188 million due to additional sailings added to the fourth quarter.

Citi noted that Carnival’s 2026 booking position remains in line with 2025’s record levels at historically higher prices. While booking volumes experienced some volatility in April, they improved in May and continued strengthening in June, with the company maintaining record pricing throughout the second quarter despite macroeconomic and geopolitical uncertainties.

The cruise operator reached all of its 2026 "Sea Change" targets 18 months ahead of schedule and plans to provide new targets in the second quarter of 2026. Carnival’s next major strategic initiative will be the opening of Celebration Key next month.

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