Carnival has received a big price target upgrade from brokers at Peel Hunt, which has rebased its profit target based on the cruise operator’s last update.
Results last month showed occupancy is back at “100% or higher” with 2023 pricing some 6% higher than 2019 levels.
Carnival is also well-placed to benefit from operating leverage with only four ship deliveries planned for the period until the end of fiscal 2026.
Guidance from the company for this year is for underlying profits (EBITDA) of US$4.2bn, but Peel Hunt remains cautious over the level of debt and the scale of the recent share price rally.
'Add' is the recommendation with a target price of 1,400p.