The analysts at Truist Securities upgraded Carnival Corporation (NYSE:CCL) from a Sell rating to a Hold rating, with a revised price target of $17.00, up from $16.00.

The analysts explain this upgrade, stating that while Carnival remains a relative underperformer, it’s challenging to justify a Sell rating when the overall industry is expected to benefit from favorable conditions. They noted that Europe is demonstrating particular strength for 2024, and Carnival has significant exposure to this market. However, the analysts also pointed out that increased competition from the “industry disruptor” MSC Cruises poses a challenge to Carnival.

The analysts increased the earnings per share (EPS) projections for Carnival to $1.20 for 2024 (up from $1.13) and $1.67 for 2025 (up from $1.57). This adjustment is primarily driven by expectations of further debt reduction, partially offset by higher fuel expenses. The company is scheduled to report its Q3/23 earnings on Sept 28.

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