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Carnival Corp (CCL) Shares: Analysts Get More Bullish on The Stock

Sam Boughedda trader
Updated 5 Jun 2024

Carnival Corp (LON: CCL) has had to navigate a turbulent last few years. However, with what looks like clear skies ahead, analysts are turning bullish on the cruise line giant.

Carnival cruise ship

YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Shares of the cruise line stock rallied over the past two sessions (+6.1% Monday and +5.8% Tuesday).

Yesterday's rise was prompted by the company announcing late in the day that it would close its P&O Cruises Australia brand and absorb that business into Carnival Cruise Line.

Reacting to the news, analysts at Melius Research said in a note to clients that although the move is “small at face value, it is strategically important as it is a proof point that management is willing to evolve the brand offering to maximize returns.”

Elsewhere on Tuesday, the CCL stock price was also helped by an upgrade from Peel Hunt. Analysts at the firm upgraded Carnival's rating to Buy from Add, raising the price target to 1,300p from 1,100p per share.

Peel Hunt explained that CCL has pushed its debt maturities out to a “manageable” maturity profile. In addition, they note that the company is pre-paying or replacing its expensive debt, which they believe should appeal to more investors.

However, they are not the only firm that is bullish on Carnival and the cruise line sector in general. According to data compiled by TradingView, 21 out of 25 analysts covering the stock have a Buy or Strong Buy rating on Carnival, three have a Hold rating, and one has a Sell rating on the company's shares.

In May, analysts at Melius said they were positive on the sector, noting its potential for margin expansion. They also believe balance sheets will improve over the next few years.

According to Melius, the sector is currently undervalued, and a re-rating could unfold over the next couple of years.

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YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.