Carnival's Fleet Optimization Poised To Unlock Explosive Earnings Growth, Says Analyst
Portfolio Pulse from Shivani Kumaresan
Mizuho analyst Ben Chaiken initiated coverage on Carnival Corp (NYSE:CCL) with a Buy rating and a $21 price target, citing fleet optimization and potential for explosive earnings growth. Carnival sold nearly 20% of its lower-margin fleet during the COVID shutdown, which is expected to significantly boost EBITDA/ALBD of the remaining fleet. The company's long-term earnings outlook suggests $6.8 billion in EBITDA by 2026, with a potential to generate $6 billion in FCF over the next three years. The analyst also notes a valuation discount to Norwegian Cruise Line Holdings Ltd (NYSE:NCLH) and favorable future yield growth from new developments.
March 26, 2024 | 5:58 pm
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POSITIVE IMPACT
Carnival Corp receives a Buy rating and a $21 price target from Mizuho analyst Ben Chaiken, highlighting fleet optimization and significant earnings growth potential.
The positive coverage and high price target set by Mizuho analyst Ben Chaiken, along with the strategic fleet optimization and expected explosive earnings growth, are likely to instill investor confidence and drive short-term positive sentiment towards CCL's stock.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Carnival Corp (CCL) is noted to have a valuation discount compared to Norwegian Cruise Line Holdings Ltd (NCLH), with expectations of accelerating free cash flow.
While the article primarily focuses on Carnival Corp's potential, the mention of a valuation discount to NCLH suggests a comparative analysis but does not directly imply a short-term impact on NCLH's stock. The focus remains on CCL's growth potential.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50