SeregaSibTravel
Carnival Corporation (NYSE:CCL) gained in early trading on Monday after Melius Research said it is hard not to become incrementally bullish on the prospects for a rally. The firm upgraded Carnival (CCL) to a Buy rating from Hold based on its confidence.
“With Josh Weinstein now one year into his tenure as CEO there seems to be a heightened approach to maximizing returns and regaining their financial position within the industry,” noted analyst Conor Cunningham. “Management has actively managed the asset portfolio to better allocate to areas where there is not only an immediate return but further upside over the years to come,” he added. Carnival’s (CCL) excess free cash flow was also said to be now more readily available to factor into balance sheet repair. In addition, point of sale outside of the U.S. is seen contributing to positive returns for CCL, suggesting potential outperformance to peers.
Melius Research’s price target of $19 on Carnival (CCL)is based on 9.5X the 2025 EV/EBITDA estimate. 17 out of 25 sell-side firms covering Carnival (CCL) have a Buy-equivalent rating on the stock or higher. Seeking Alpha analysts also have a consensus Buy rating on CCL.
Shares of Carnival (CCL) rose 0.77% in premarket action to $14.52.
