Carnival (CCL – Research Report), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Ali Naqvi from HSBC maintained a Hold rating on the stock and has a $24.00 price target.
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Ali Naqvi has given his Hold rating due to a combination of factors that reflect both positive developments and ongoing concerns for Carnival. The company has shown solid progress in profit recovery and deleveraging, with recent refinancing efforts being a positive step. Booking trends have been resilient, with strong pricing and demand observed, contributing to a notable increase in EBITDA. However, despite these improvements, Carnival’s high gearing and slower profit recovery compared to peers remain areas of concern.
Moreover, while macroeconomic risks such as potential consumer spending cuts exist, Carnival’s lower capital expenditure profile and ability to optimize itineraries may offer some resilience in a downturn. The stock is currently trading at levels comparable to pre-pandemic times, and while growth prospects are factored into the current pricing, the potential upside is limited. Therefore, Naqvi believes that a Hold rating is appropriate, reflecting a balanced view of the company’s current position and future outlook.
According to TipRanks, Naqvi is an analyst with an average return of -8.0% and a 37.14% success rate.