Stifel Sees ’Long-Term Buying Opportunity’ in Carnival Stock Despite Market Reaction
Carnival Corporation's stock faced downward pressure despite posting record net income and raising its full-year guidance for the third consecutive quarter. The cruise operator reported Q3 revenue of $8.15 billion, exceeding estimates by $40 million, with adjusted EPS of $1.43 beating expectations by $0.11.
Net yields ROSE 5.3% in constant currency while customer deposits hit an all-time high of $7.1 billion. For fiscal 2024, Carnival now anticipates adjusted net income growth of approximately 55%, surpassing both its June outlook and analyst forecasts.
Stifel analyst Steven Wieczynski attributes the market's negative reaction to unwarranted fears about yield/cost dynamics, maintaining the pullback presents a compelling entry point for investors.
