UBS analyst Robin M. Farley maintained a Buy rating on Carnival yesterday and set a price target of $35.00.
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Robin M. Farley has given his Buy rating due to a combination of factors that suggest a positive outlook for Carnival’s stock. One key reason is the company’s strategic deployment in the Caribbean, where Carnival is increasing its capacity by 7% next year. This growth is more measured compared to the overall industry’s 12% increase, which could position Carnival favorably in terms of pricing and market stability.
Additionally, Farley notes that while cruise bookings are not entirely immune to economic downturns, they have shown resilience in past recessions. This resilience, coupled with the anticipation of Carnival’s upcoming December earnings report and 2026 guidance, adds to the positive sentiment. Furthermore, despite some expected yield drags due to accounting treatments and increased drydock expenses, the overall growth potential and strategic initiatives like the Celebration Key expansion are seen as favorable factors supporting the Buy rating.
M. Farley covers the Consumer Cyclical sector, focusing on stocks such as MGM Resorts, Polaris, and Carnival. According to TipRanks, M. Farley has an average return of 20.2% and a 62.11% success rate on recommended stocks.
In another report released today, Barclays also maintained a Buy rating on the stock with a $37.00 price target.