Carnival Corporation (CCL) PT Raised to $28 at Tigress Financial Partners

Tigress Financial Partners analyst Ivan Feinseth raised the price target on Carnival Corporation (NYSE: CCL) to $28.00 while maintaining a Buy rating.

The analyst comments "We reiterate our Buy rating and increase our 12-month target price to $28 as CCL reports another quarter of record results as it continues to benefit from strong cruise demand and consumer spending on travel. CCL reported Q3 2024 revenue increased 14.49% Y/Y to a record $7.9 billion, driven by net yields and record net per diems significantly exceeding 2023 levels. CCL’s cumulative advanced booked position for FY25 is above FY24’s record position, with prices also running ahead of last year. Adjusted cruise costs excluding fuel per ALBD decreased vs. 2023, reflecting cost-saving opportunities and the accelerated easing of inflationary pressures. CCL opened a new Fleet Operations Center in Hamburg, Germany, to support its European brands. CCL announced the expansion of Half Moon Cay, including expanded beach, dining, and beverage experiences, as well as a new pier enabling larger ships to visit. CCL opened bookings for Celebration Key’s new exclusive retreat, Pearl Cove Beach Club, in anticipation of the destination’s debut in July 2025. Pearl Cove Beach Club offers a premium experience featuring supervillas, cabanas, and shore excursions. Nearly half of 2025 has been booked, and CCL has less inventory remaining for sale than in FY23, positioning CCL to leverage strong demand to achieve record ticket pricing. CCL is seeing record booking volumes in the last three months for sailings in 2026. CCL is also benefiting from digital advertising initiatives, with web visits up over 40% versus 2019, paid search up more than 60%, and natural search up over 70%. CCL continues to attract even more new-to-cruise guests, with both new-to-cruise and repeat guests up double-digit percentages over last year. Per diems for the third quarter improved at least 6% versus the prior year, driven by higher ticket prices and improved onboard spending. Unit operating income increased 26%, the highest level CCL has achieved in fifteen years. Total customer deposits were a record $6.8 billion, surpassing the previous 3Q record of $6.4 billion in 2023 despite lower capacity growth. Strong demand enabled the company to increase its full-year yield guidance for the third time this year. CCL is also introducing its Sun Princess, Princess Cruises’ next-generation ship, as it continues to introduce a robust new ship introductions cadence throughout the next several years. Ongoing gains in revenue and cash flow will continue to drive a return to profitability and, together with ongoing debt reduction and operating efficiencies, will drive a significant increase in Return on Capital, a recovery in Economic Profit, and significant shareholder value creation. We believe a significant upside in the shares exists, and our 12-month target price of $28 represents a potential return of over 55% from current levels."

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