Carnival Shares Surge As Analysts Predict Sunny Skies Ahead

Shares of Carnival Corp CCL spiked in during Monday's trading session, as the stock was upgraded with bullish ratings from two analysts.

JPMorgan On Carnival

Analyst Matthew Boss upgraded the rating from Neutral to Overweight, while raising the price target from $11 to $16.

During meetings hosted by JPMorgan, the senior management of Carnival and peers Norwegian Cruise Line Holdings Ltd NCLH and Royal Caribbean Cruises Ltd RCL maintained a “bullish tone on current trends” as well as on bookings in the first half of 2024, with “zero signs of momentum slowing,” Boss said in the upgrade note.

These dynamics are occurring as “pent-up loyalist demand a year ago transitions to new-to-cruise strength today,” he added. The analyst further stated that these companies had more balance sheet flexibility, with "ample liquidity for debt pay-down."

Check out other analyst stock ratings.

BofA Securities On Carnival

Analyst Andrew Didora upgraded the rating from Neutral to Buy, while raising the price target from $11 to $20.

Meetings with Carnival, Norwegian Cruise Line and Royal Caribbean Cruises suggested that industry demand “remains steady in a time of consumer uncertainty, the pricing environment is rational, and booking curves are in line with company expectations,” Didora said in the upgrade note.

“In our opinion, the cruise industry's long booking window and strong current demand could allow it to be less susceptible to a slowdown in the leisure consumer relative to other areas of travel,” he added.

CCL Price Action: Shares of Carnival had risen by 12.9% to $14.79 at the time of publishing Monday.

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