Wells Fargo Initiates Carnival (CCL) Coverage with ‘Overweight’ Rating, $37 PT, Cites Attractive Cruise Sector Outlook

1 month ago 17

Maham Fatima

Tue, November 25, 2025 astatine 7:28 AM CST 2 min read

Carnival Corporation (NYSE:CCL) is 1 of the most undervalued NYSE stocks to bargain close now. On November 18, Wells Fargo expert Trey Bowers initiated sum of Carnival with an Overweight standing and $37 terms target. This determination comes arsenic Wells Fargo considers the cruise assemblage to beryllium the astir charismatic country wrong its sum of gaming, leisure, and lodging companies. The steadfast anticipates a accelerated betterment successful ROIC for some idiosyncratic cruise companies and the manufacture arsenic a whole. Bowers believes that the TAM for cruises volition proceed to grow.

In its Q3 2025 net report, Carnival Corporation disclosed generating a grounds adjusted nett income of $2 billion, surpassing its pre-pandemic benchmark by ~10%. This translated to an EPS of $1.43, beating Street expectations by $0.11. This accomplishment came contempt a important fiscal headwind from a ~600% summation successful nett involvement disbursal compared to 2019.

Wells Fargo Initiates Carnival (CCL) Coverage with 'Overweight' Rating, $37 PT, Cites Attractive Cruise Sector Outlook

The institution delivered grounds revenues and yields, with yields expanding by 4.6% connected a same-ship ground driven by beardown close-in request and precocious onboard spending. The full gross for the 4th stood astatine $8.15 billion, which was modestly up 3.25% year-over-year. Furthermore, the company’s ROIC reached 13% for the trailing 12 months. Carnival besides raised its full-year guidance for the 3rd clip this year, present expecting nett income of ~$2.9 cardinal oregon $2.14 per share.

Carnival Corporation (NYSE:CCL) is simply a cruise institution that provides leisure question services successful North America, Australia, Europe, and internationally. The institution operates done 4 segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour & Other.

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