In a surprising twist, Carnival Company (LON:) stock rose to a 52-week high, reaching $24.83. The leisure company has seen its shares boosted by a wave of optimism as the industry recovers from the impact of the pandemic. This peak represents a significant multiple, with the stock charting a course showing a 70.21% increase in 1-year change data. Investors are eyeing the horizon as Carnival (NYSE: ) heads toward potentially calmer seas and improved finances.
In other recent news, major cruise operators, including Royal Caribbean (NYSE:) Group, Carnival Corp, and Norwegian Cruise Line (NYSE:) Holdings, have made significant investments in private properties. These investments, such as Royal Caribbean’s $250 million renovation of CocoCay, have led to a significant increase in revenue. The CEO of Royal Caribbean has offered a private space for driving “huge, significant gains” for the company.
Meanwhile, Carnival Corp’s strategic focus on biotransformation efforts has been highlighted by Citi. The company maintained a buy rating on Carnival and raised its price target to $28 from $25. Carnival’s latest third quarter results showed promise, exceeding investor expectations. The company’s strong profits were attributed to strong demand for cruises and consumer travel spending, with significant increases in fares and ticket prices.
Meanwhile, Tigress Financial Partners raised their price target on shares of Carnival Corporation to $28.00, maintaining a buy rating. The company pointed to record quarterly results for the company, driven by strong cruise demand and consumer travel spending. Carnival’s advanced bookings for fiscal year 2025 are already surpassing last year’s record, with higher prices.
About Deutsche Bank (ETR:), they maintained a Hold rating on Carnival Corporation with a target price of $19.00. The company’s stance comes after Carnival executives shared optimistic booking trends for the coming years. Despite positive booking trends, Deutsche Bank remains cautious, suggesting that there may be a tipping point at which the rising booking curve could be reached, which could raise questions about the sustainability of continued rate gains.
Finally, Citi has raised its target prices for fleet operators. Norwegian Cruise’s target was raised to $30 from $20, Royal Caribbean’s to $253 from $204, and Carnival’s was raised $3 to $28. Citi also highlighted the expected capacity growth of Royal Caribbean and Norwegian Cruise, forecasting healthy annual growth of 6% over the next three years.
InvestingPro Insights
Carnival Corporation’s recent stock performance is consistent with several key metrics from InvestingPro. The company’s market cap stands at an impressive $32.14 billion, reflecting investor confidence in its recovery trajectory. InvestingPro data shows that CCL’s revenue grew by 22.18% in the last twelve months, reaching $24.48 billion, reflecting a strong increase in travel demand.
Two key InvestingPro tips highlight Carnival’s current position: “Trading near 52-week high” and “Strong returns over the past three months,” with the latter evidenced by an impressive 66.33% price return over that period. These tips confirm the article’s discussion of the stock’s significant multiples and recent highs.
For investors who want to delve deeper into Carnival’s prospects, InvestingPro offers 12 additional tips, which provide a comprehensive view of the company’s financial health and market conditions. This wealth of information can be helpful for those looking to navigate the waters of vacation investment.
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