Cruise operator Carnival Corporation is set to report its third-quarter earnings at the end of the month. Analysts expect the company to follow up its successful Q2 with another earnings beat and are giving the Carnival stock a price target bump.
According to Mizuho Financial Group’s analyst Ben Chaiken, Carnival remains at the top of his picks from the leisure industry as he believes the company will continue to fill out its cruise ships while standing to benefit from low prices of fuel.
“Amidst the Covid shutdown, CCL sold roughly 20% of its lower-margin fleet, which we believe sets the stage for stronger than expected operating leverage now that CCL is at full occupancy,” Chaiken explained in a note shared with clients last week.
Chaiken has an “outperform” rating on Carnival’s stock while adjusting his price target from $22 per share to $25 per share.
Analyst Steven Wieczynski of Stifel Financial is also optimistic about Carnival shares. He has a “Buy” rating on the stock and upped his price target to $27 per share compared to the previous mark of $25 per share.
Carnival’s stock closed at $19.00 per share on Friday. It marks almost a 10% jump year-to-date.