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Investing.com - Mizuho (NYSE:MFG) raised its price target on Carnival Corporation (NYSE:CCL) stock to $35.00 from $33.00 on Wednesday, while maintaining an Outperform rating following the cruise operator’s better-than-expected quarterly performance.
The cruise line reported second-quarter 2025 results that significantly exceeded expectations, with stronger yields and better cost management despite what Mizuho described as "presumably several weeks of softness" earlier in the quarter.
Carnival raised its full-year EBITDA guidance by approximately $190 million, moving from about $2.7 billion to roughly $2.9 billion, reflecting the magnitude of the second-quarter outperformance.
Mizuho highlighted that Carnival’s business trajectory is stronger than anticipated, with both fuel and non-fuel costs remaining subdued, while the company makes progress with its private island destinations.
The investment firm considers Carnival "very compelling" with potential earnings upside and an inexpensive valuation at 7.7 times 2026 estimates, noting the market underappreciates the free cash flow generation potential that could drive opportunities to reduce interest expenses.
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