Susquehanna analyst Christopher Stathoulopoulos upgraded Carnival to Positive from Neutral with a price target of $11, up from $8. The post-earnings selloff in shares of Carnival reflects some concern that the strength of the 2023 wave season "might be reverting back to its old ways," the analyst tells investors in a research note. However, the firm disagrees and sees the various initiatives that Carnival has in place as helping to drive unit margin recovery into fiscal 2024, with liquidity concerns "effectively de-risked" through 2023. Susquehanna believes the "strong" 2023 wave season sets up a "constructive, fundamental runway" for fiscal 2023, with Carnival’s revenue and marketing initiatives, fleet optimization plan, and the value gap to land-based alternatives supporting a steady recovery for adjusted EBITDA into fiscal 2024.
Published first on TheFly
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