William Blair analyst Sharon Zackfia has reiterated their bullish stance on CCL stock, giving a Buy rating today.
Sharon Zackfia has given her Buy rating due to a combination of factors that highlight Carnival’s strong financial performance and growth potential. The company exceeded first-quarter profit expectations, driven by higher-than-anticipated yields and reduced net cruise costs excluding fuel. This was largely due to favorable timing and ongoing cost-saving measures.
Additionally, Carnival experienced a significant increase in constant-currency net yields, surpassing guidance with a 7.3% rise. This growth was fueled by widespread increases in ticket prices and onboard spending, with both contributing equally to the upside. Strong last-minute pricing and enhanced onboard spending across the Atlantic, along with the strong performance of European brands in terms of price and occupancy, further supported the positive outlook. The growth in both repeat and new-to-cruise customers also underscores the company’s robust market position.
According to TipRanks, Zackfia is a 5-star analyst with an average return of 13.2% and a 52.61% success rate. Zackfia covers the Consumer Cyclical sector, focusing on stocks such as Carnival, Potbelly, and Sweetgreen.
In another report released today, Stifel Nicolaus also reiterated a Buy rating on the stock with a $30.00 price target.