5. Carnival Corporation & plc (NYSE:CCL)
Average Price Target Upside as of August 5: 52.78%
Number of Hedge Fund Holders: 56
Carnival Corporation & plc (NYSE:CCL) is a Florida-based company and one of the largest cruise companies in the world. It runs through four segments, NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other. The company has 87 ships sailing under 9 brands including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, and Cunard.
Carnival Corporation (NYSE:CCL) offers services related to leisure travel and has a strong market presence in the luxury travel segment, especially Seabourn and Cunard lines. The company provides cruise packages that have all-inclusive options that cover accommodations, meals, entertainment, and activities.
In addition to cruises, the company provides travel-related services including shore excursions, hotel stays before and after cruises and transportation. It also offers specialized cruises catering to different interests.
In the first quarter, 56 hedge funds had stakes in Carnival Corporation (NYSE:CCL), with total positions worth $1.5 billion. As of March 31, Point72 Asset Management is the largest shareholder in the company with a stake worth $208.494 million.
Carnival Corporation (NYSE:CCL) is one of the top luxury stocks according to analysts. The company is showing strong potential for growth, as highlighted by recent updates from financial analysts. On June 27, Argus raised the price target on the stock to $25 from $20 and kept a Buy rating. This upgrade follows a strong Q1 report where the company achieved record booking volumes at higher pricing. The company also enhanced the efficiency of its fleet. According to Argus, these factors suggest that the stock is currently undervalued, further supporting a positive outlook for the company’s future performance.
Similarly, on July 24, JPMorgan raised the price target on Carnival Corporation (NYSE:CCL) to $25 from $23 and maintained an Overweight rating. This adjustment reflects optimism based on recent observations and feedback from the company. The analyst noted that demand for cruises remains strong, with no signs of a slowdown in key performance indicators. As per the analyst, with a global vacation market valued at $1.9 trillion, the cruise industry is expected to capture a growing share of this expansive market.
Looking ahead to 2024, Carnival Corporation (NYSE:CCL) forecasts a 10.25% increase in net yields compared to 2023, surpassing earlier guidance. The company also expects an adjusted net income of around $1.55 billion, which is $275 million better than previous projections. These developments highlight the company’s strong market position and effective management, suggesting a promising future for investors.
Lastly, Carnival Corporation (NYSE:CCL) has a consensus Buy rating as per the 28 analysts that have covered it. As of August 5, the average price target of $22.00 implies an upside of 52.78% to the current levels.
