Carnival Corporation is a leading cruise company, currently undervalued and trading at a forward P/E of 12.90, below the sector median. CCL posted its 11th consecutive double-beat quarter, with strong revenue and EPS growth, despite a brief negative market reaction post-earnings. A $36 price target suggests a 28% upside over the next 12 months, supported by high margins, steady growth, and robust industry demand.
CCL has reported the durable consumer demand for cruising, as observed in the raised FY2025 guidance and the management achieving the 2026 SEA Change targets 18 months ahead of schedule. This is on top of the excellent 2026 booking trends at higher prices and the growing customer deposits, significantly aided by the increased close-in demand. These reasons are also why CCL has felt confident to increase its investments in its new fleet through 2033 and private islands through 2026.
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| Leisure Industry | Consumer Cyclical Sector | Joshua Ian Weinstein CEO | XDUS Exchange | GB0031215220 ISIN |
| US Country | 115,000 Employees | 13 Mar 2020 Last Dividend | 15 Jun 1998 Last Split | - IPO Date |
Carnival Corporation & plc, established in 1972 and headquartered in Miami, Florida, is a prominent entity in the leisure travel sector, serving customers in North America, Australia, Europe, Asia, and beyond. The company is distinguished by its diversified operations spanning across NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour and Other segments. Its comprehensive offerings include not only cruise services but also the operation of port destinations, private islands, a solar park, and the ownership and operation of hotels, lodges, glass-domed railcars, and motor coaches. Carnival Corporation & plc markets its leisure travel services under a wide array of well-known brand names, catering to a global clientele through a mix of direct sales and partnerships with travel agents and tour organizers.
Carnival Corporation & plc operates a multitude of cruise lines, including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Costa Cruises, AIDA Cruises, P&O Cruises, and Cunard. These brands cater to a diverse range of consumer segments, offering everything from luxury to budget-friendly sea travel experiences across the globe.
The company develops and operates exclusive port destinations and private islands, providing unique, carefully curated experiences for its cruise line passengers. These destinations are designed to offer visitors a blend of local culture, adventure, and relaxation, significantly enriching the overall travel experience.
Carnival Corporation & plc invests in sustainable energy sources, including the operation of a solar park. This initiative underscores the company’s commitment to environmental stewardship and reducing its carbon footprint across its global operations.
In addition to sea travel, the company owns and operates a range of land-based vacation options. This includes hotels, lodges, and unique travel experiences such as journeys in glass-domed railcars and motor coaches, providing guests with luxurious and immersive ways to explore destinations beyond the coastlines.
Carnival Corporation & plc makes its wide variety of cruises and other leisure travel services available through several channels, including travel agents, tour operators, vacation planners, and its websites. This broad sales network ensures that potential travelers can easily access and book their desired travel experiences.