Carnival (CCL) Stock Forecast & Price Target

Carnival demonstrated a notable improvement in its financial performance, with Return on Capital (ROC) rising from 8.40% to 10.41% over the last twelve months, highlighting enhanced efficiency in capital utilization. The company achieved a record net sales revenue of $26.23 billion, marking a 7.14% year-over-year increase, alongside a substantial Economic Profit (EP) surge of 95.94%, reflecting strong operational profitability. Additionally, the global cruise industry growth reinforced Carnival's outlook, as it continues to benefit from increased consumer spending on experiential travel, with the company's Net Operating Profit After Tax (NOPAT) rising significantly by 24.09% year-over-year.

Carnival Corporation recently reduced its net debt-to-EBITDA ratio to 3.6x, with a target of below 3x by 2026, demonstrating an aggressive approach to debt management; however, this also reflects ongoing financial stress. The company has significantly scaled back its new ship deliveries, projecting a compound annual growth rate in capacity of less than 2% until 2028, which is markedly below the industry average of approximately 6%. Additionally, various risks such as rising fuel prices, potential negative impacts from COVID-19, and economic slowdown further challenge Carnival's ability to sustain profitability and growth moving forward.