Carnival PLC (LSE:CCL) shares rose 4.5% on Tuesday to top the FTSE 350 leaderboard after the shares were upgraded by Peel Hunt.
The broker moved its recommendation to 'buy' from 'add' for the cruise opeator, with a new target price of 1,300p up from 1,100p.
Carnival is "well placed" to maximise the yield on its fleet amidst a market where limited capacity growth is "creating pricing tension", analyst Ivor Jones said.
He believes YODA, Carnival's proprietary yield management system, is "paying off" with more rigorous application across the group, while ships are also maximising on-board customer spending via a mixture of bundled offers, pre-cruise special offers and additional experiences.
On its finances, Carnival is "trading out of trouble", Jones said, suggesting the accelerating debt-for-equity swap is "going to appeal to an increasing number of investors".