BofA Reiterates Buy On Carnival Ahead Of Q3 Results

BofA Securities reiterated its Buy rating on Carnival Corporation (NYSE: CCL) with a price target of $38, saying it expects results in line with consensus when the company reports third-quarter earnings on September 29.

The firm said recent industry commentary suggested mixed signals, with Royal Caribbean posting a softer yield outlook while Norwegian Cruise Line was more aligned with forecasts. Both operators highlighted strength in close-in bookings and onboard spending.

BofA noted that its internal card data showed monthly cruise spending growth accelerating to 11.9% year-on-year in August from 9% in July, which should support Carnival’s results.

The bank said it maintained a bullish view on Carnival due to strong fundamentals, the launch of Celebration Key in July providing a yield tailwind, ongoing deleveraging with limited capex, and attractive valuation at 8.5x estimated 2026 EBITDAR versus a historical average of 10x.