Macquarie Research sees strong forward indicators for Carnival Corp.

The Carnival Corp. (NYSE:) 12-month price target was lifted to $22 from $16 per share at Macquarie Research in a note this week, with analysts reiterating an Outperform rating on the stock.

Analysts told investors that the company has strong forward indicators, noting its F4Q results last week. As a result, the firm raised its outlook for the company.

Carnival’s “F4Q results last week were strong across major metrics and booking strength with higher-than-expected pricing, but costs were sticky,” said the analysts.

“F4Q puts CCL ahead of schedule on SEA Change, with guidance indicating more than halfway toward goal achievement by FY24,” they added. The price target increase reflects normalized FY25 operations and stable pricing, as well as fewer cost headwinds and easing fuel prices, said the firm.

Macquarie now sees CCL’s FY24E/25E adjusted EPS at $0.92 and $1.39, respectively, up from $0.85 and $1.43 prior. In addition, it introduced its FY26 adjusted EPS estimate of $1.71.

The research firm believes catalysts for the stock include consumer macro, interest rates, inflation, geopolitics, fuel, and weather.