Carnival (CCL) Stock Forecast & Price Target

Carnival Corporation's strong outlook is supported by a significant increase in yields, with a full-year guidance raise of 100 basis points, reflecting positive demand and operational efficiencies. The company benefited from a notable load improvement of almost 500 basis points, alongside new capacity additions, indicating robust recovery and growth potential within the cruise sector. Furthermore, Carnival's diverse portfolio of brands and consistent consumer interest in cruising enhances its market position and strengthens the expectation for sustained profitability moving forward.

Carnival Corporation is facing a challenging financial outlook, as indicated by recent trends showing a decline in bookings and lowered growth estimates for 2025. The company has significantly reduced its new ship pipeline, anticipating a compounded annual growth rate (CAGR) of less than 2% in capacity through 2028, which is notably below the industry average of approximately 6%. Furthermore, with shares experiencing a substantial decline of about 30% over the past three weeks, investor expectations for Carnival's upcoming financial guidance appear to be considerably muted.