Analysts offered mixed price target changes after Carnival’s second-quarter results, but remained positive on long-term demand.
- Susquehanna raised its price target, while Barclays trimmed its forecast, saying Europe-related concerns are easing.
- Analysts said Carnival still leads peers in loyalty-driven yield growth.
- Carnival expects to earn $1.35 per share in the third quarter, below analysts’ average forecast of $1.42 per share.
Carnival Corp (CCL) stock received mixed price target adjustments from Wall Street following its fiscal second-quarter (Q2) earnings, though analysts largely maintained favorable views on the cruise operator’s longer-term outlook and demand trends.
Analysts See Strong Forward Booking Trends For CCL
Analysts at Susquehanna and Barclays said Carnival faces some near-term challenges, but they remain optimistic about its outlook. They pointed to strong demand, with customers continuing to book cruises months in advance despite geopolitical issues affecting some European destinations.
Susquehanna raised its price target for Carnival to $33 from $30 while maintaining a ‘Positive’ rating. The firm said management’s assessment that the weakness tied to European deployments is temporary appears reasonable.
Analysts also highlighted Carnival’s strong 2027 booking trends, with record ticket prices and high ship occupancy. This shows that customers remain confident and are booking their cruises well in advance.
Barclays took a more cautious approach by trimming its price target to $35 from $36. However, the firm retained its ‘Overweight’ rating on the stock. The firm said Carnival’s expected yield in the second half of fiscal 2026 was weaker than previously anticipated, but the result was not a major surprise given when the company reported its earnings.
Barclays explained that concerns linked to the European market are becoming less important and may already be reflected in company guidance. The firm suggested that management’s outlook now carries reduced risk compared with earlier expectations.
Despite the revised forecast, Barclays said Carnival continues to stand out among major cruise operators because of its ability to generate stronger loyalty-adjusted yield growth.
Carnival Corp stock edged 0.6% higher in Thursday’s premarket.
CCL Q2 Financial Performance
Carnival generated $6.6 billion in revenue during Q2, slightly below analysts’ expectations of $6.7 billion. However, the company earned $0.41 per share on an adjusted basis, beating Wall Street forecasts of $0.34 per share, according to Fiscal AI data.
Carnival expects to earn $1.35 per share in the third quarter, below analysts’ average forecast of $1.42 per share, according to Fiscal AI data. For the full year, the company now expects net yields to grow about 1.75%, down from its earlier forecast of 2.75%.
CCL Retail Traders View
On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory.
A user said, “Yeah, they took on a lot of debt during Covid, but they had to. Look at it now. Reinstated dividend, significant buybacks, revenue growing, ships full, growing in nearly every significant category. It’s just a matter of time before earnings drive P/E to a point that the big boys have to take $CCL seriously again.”
Another user said, “Bearish only short-term, otherwise great company. And only bearish b/c of how the market responded, not b/c of company fundamentals.”
CCL stock has declined by over 5% year-to-date.
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