Carnival price target raised to $16.50 from $15 at Morgan Stanley

Morgan Stanley analyst Jamie Rollo raised the firm’s price target on Carnival to $16.50 from $15 and keeps an Underweight rating on the shares. The firm, which updated forecasts post Carnival’s Q3 report, notes that its FY24, FY25 and FY26 EPS forecasts rise 8%, 13% and 12%, respectively. However, while the cruise booking environment remains stronger than other travel segments, and Carnival has the benefit of fuel and currency moving in its favor, it has an asset heavy model with high operating and financial leverage, leaving it relatively more exposed to a slowdown than other names under the analyst’s coverage, the analyst noted.