Carnival Corporation CCL shares are trading higher on Tuesday.
The company will release its third-quarter results on Sept. 29, 2025.
CCL is in positive territory. Check it out here.
Stifel analyst Steven M. Wieczynski reiterated the Buy rating on the stock, raising the price forecast from $34 to $38.
Wieczynski predicts Carnival to be in another beat-and-raise setup for the earnings, citing persistently strong close-in demand and pricing.
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The analyst indicates booking trends remain healthy and says he has not seen any weakening in onboard spending.
Per Wieczynski, recent worries about softer 2026 pricing/demand and rising promotions are misplaced based on conversations with travel agents and the operators.
Carnival shares are still undervalued, with multiple positive catalysts likely over the next six to 12 months, the analyst writes.
Wieczynski stays constructive, contending investors are overlooking robust free cash flow that should accelerate deleveraging and support a return to investment-grade status.
Wieczynski highlighted that he would not be surprised if 2025 yields finish above 5.5%, which in his view would push 2025 EBITDA modestly ahead of company guidance; his model sits at $6.99 billion versus guidance around $6.9 billion.
Turning to the second half of 2025 and 2026, he sees multiple catalysts that could lift the shares from current levels.
He also sees a viable path back to an investment-grade rating by year-end, potentially clearing the way for capital returns through dividends or buybacks.
In his view, Carnival can further chip away at higher-cost borrowings and refinance into lower-cost debt, producing meaningful interest savings and reinforcing the equity story.
CCL Price Action: Carnival shares are trading higher by 0.59% to $30.89 at publication on Tuesday.
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Photo: Courtesy Carnival
