Why Carnival Shares Are Rising Tuesday

Carnival Corp CCL reported better-than-expected financial results on Monday. Several analysts are out with positive coverage Tuesday and shares are reacting favorably. 

• Wells Fargo analyst Daniel Politzer upgraded Carnival from Underweight to Equal-Weight and set a $9 price target.
• Barclays analyst Brandt Montour maintained Carnival with an Overweight and raised the price target from $12 to $13.
• Credit Suisse analyst Benjamin Chaiken maintained Carnival with an Outperform and raised the price target from $16 to $18.

Q1 Results: The analyst changes come after Carnival reported fiscal first-quarter results ahead of expectations due to stronger pricing and onboard spending, as well as higher occupancy and favorable timing of operating costs. 

First-quarter revenue came in at $4.43 billion, which beat estimates of $4.33 billion. Carnival reported a quarterly loss of 55 cents per share, which beat estimates for a loss of 60 cents per share.

Occupancy in the quarter was 91%. The company guided for occupancy of 98% or higher in the second quarter and expects occupancy to return to historical levels this summer.

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CCL Price Action: Carnival shares were up 6.37% at $9.35 at the time of writing, according to Benzinga Pro.

Photo: Tim291 from Pixabay.