William Blair analyst Sharon Zackfia has reiterated their bullish stance on CCL stock, giving a Buy rating today.
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Sharon Zackfia’s rating is based on several positive indicators for Carnival’s financial performance. The company is expected to surpass its guidance with a significant increase in adjusted EPS for the second fiscal quarter, driven by strong demand, robust close-in bookings, and increased onboard spending. Despite a slight dip in pricing earlier in the year due to consumer concerns over tariffs, there has been a strong recovery, particularly in Caribbean and Mediterranean itineraries, which supports a positive outlook for the company’s revenue.
Additionally, Carnival is set to benefit from external economic factors such as a weaker dollar and reduced fuel costs, which are expected to contribute to profit improvements. These favorable conditions are anticipated to provide a modest profit upside for the second quarter and lead to an increased full-year EPS projection. The combination of strong demand, pricing recovery, and cost advantages underpins the Buy rating for Carnival’s stock.
In another report released today, Barclays also maintained a Buy rating on the stock with a $30.00 price target.