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Shares of Carnival Corp CCL spiked on Tuesday, after the company reported better-than-expected quarterly results.
Although forex and fuel are likely to be a headwind for fiscal 2023 performance, volumes and pricing are tracking strongly above the 2019 levels, according to Susquehanna.
The Carnival Analyst: Christopher Stathoulopoulos upgraded the rating for Carnival from Neutral to Positive, while raising the price target from $8 to $11.
The Carnival Thesis: The company’s earnings call on Monday suggested that the Wave Season has been “phenomenal,” Stathoulopoulos said in the upgrade note.
Check out other analyst stock ratings.
“The strong 2023 Wave Season sets up a constructive, fundamental runway for FY23, with CCL’s revenue and marketing initiatives, fleet optimization plan, new perspective in the C-suite, and the value gap to land-based alternatives supporting a steady recovery for adjusted EBITDA into FY24,” the analyst wrote.
“While concerns around the banking sector certainly add to the risk of a slowdown, our base-case view assumes a low-single-digit five-year CAGR in passengers carried for FY23,” he added.
CCL Price Action: Shares of Carnival up 3.38% to $9.64 at the time of publication on Wednesday.
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Photo: Unsplash
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Image and article originally from www.benzinga.com. Read the original article here.