Analyst Jamie Rollo of Morgan Stanley maintained a Hold rating on Carnival (CCL – Research Report), retaining the price target of $21.00.
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Jamie Rollo has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Carnival’s financial outlook. On the positive side, Carnival’s Q2 earnings per share significantly exceeded expectations, with revenues and adjusted EBITDA also surpassing forecasts. The company has demonstrated strong net revenue yields and managed to control costs better than anticipated, which are encouraging signs for investors.
However, despite these positive results, there are reasons for caution. The company’s advanced booked position for the remainder of the year, while strong, shows slightly weaker occupancy levels compared to previous records. Additionally, while the 2026 booked position aligns with 2025 levels, it does not surpass them, indicating potential limitations in growth. These mixed signals, combined with the company’s substantial net debt, contribute to the Hold rating, suggesting that while there is potential for future growth, there are also significant risks that investors should consider.
Based on the recent corporate insider activity of 29 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CCL in relation to earlier this year.