In a report released today, Andrew Didora from Bank of America Securities reiterated a Buy rating on Carnival, with a price target of $40.00.
Claim 70% Off TipRanks This Holiday Season
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Andrew Didora has given his Buy rating due to a combination of factors that underscore Carnival’s improving fundamentals and earnings power. He highlights that the company closed 2025 with results meaningfully ahead of expectations, driven by stronger-than-anticipated pricing (net yields) and better cost control, which together boosted profitability. Looking into 2026, management’s guidance for both revenue yields and operating costs aligns with his prior assumptions, and his updated forecasts call for slightly higher earnings and EBITDA, supported in part by lower fuel expense. He also notes that concerns about elevated Caribbean industry capacity are being offset by Carnival’s relatively modest capacity growth in that region and the benefit of a diversified customer base, including a sizable share of European passengers.
In addition, Didora points to Carnival’s ongoing progress in executing on costs and gradually strengthening its balance sheet as key supports for the investment case. He views the planned unification of the company’s dual-listed structure as a positive strategic step that should enhance share liquidity, streamline governance, and reduce administrative costs over time. With these operational, financial, and structural improvements in view, he raises his price objective to $40, reflecting a higher 2026 EBITDA outlook while maintaining a constructive stance on the shares. Taken together, these elements lead him to reiterate a Buy recommendation on Carnival’s stock.
According to TipRanks, Didora is a 3-star analyst with an average return of 2.2% and a 56.50% success rate. Didora covers the Industrials sector, focusing on stocks such as Alaska Air, Southwest Airlines, and Allegiant Travel Company.
In another report released today, Citi also maintained a Buy rating on the stock with a $39.00 price target.