Wells Fargo Reiterates Buy Rating on Carnival Corporation
Wells Fargo maintains its buy rating on Carnival Corporation with a $38 price target, a 30.72% upside from the current price.
Key Points
- Wells Fargo reiterated its buy rating on Carnival Corporation on June 25, 2026, with a price target of $38.
- Wells Fargo's $38 price target implies 30.72% upside from Carnival Corporation Ltd.'s ($CCL) current $29.07 share price.
- Carnival Corporation's shares traded at $28.91 on Thursday, with a market cap of $41.8 billion and a P/E ratio of 13.3.
- Insiders at Carnival sold shares in May 2026, and analysts from Susquehanna and Barclays also maintained buy ratings recently.
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Wells Fargo has reiterated its buy rating on Carnival Corporation Ltd. (NYSE:CCL) with a price target of $38. Analyst Trey Bowers confirmed this stance on June 25, 2026. On that Thursday, Carnival's shares traded around $28.91.
Wells Fargo vs. the S&P 500
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Other Institutional Activity in Carnival Corporation
In recent institutional activity, BlackRock, Inc. increased its holdings in Carnival by 6,275,763 shares, bringing its total to 89,979,406 shares valued at approximately $2.33 billion, a 7.5% increase. Vanguard Capital Management LLC and Vanguard Portfolio Management LLC both opened new positions, acquiring 73,474,107 and 54,775,945 shares, respectively. State Street Corp added 2,164,352 shares, marking a 4.5% increase, totaling 50,238,525 shares worth about $1.30 billion. Causeway Capital Management LLC boosted its stake by 3,151,811 shares, a 9.3% rise, ending with 37,096,593 shares valued at $960.06 million.
Carnival Corporation Ltd. Stock Up 17.4%
Shares of NYSE:CCL traded near $28.91 on Thursday. Carnival Corporation has a market capitalization of about $41.8 billion, with a P/E ratio of 13.3 and a forward P/E of 11.6. The stock's beta is 2.331, indicating higher volatility compared to the market. The 52-week range is between $22.58 and $34.03, with a 50-day moving average of $27.18 and a 200-day moving average of $28.37. The company has a current ratio of 0.299 and a quick ratio of 0.168, with a debt-to-equity ratio of 203.9.
$CCL price target
Past daily closes and this analyst's 12-month price target. Not investment advice.
Recent Earnings
Carnival Corporation reported revenue of $26.98 billion, showing a growth of 6.1%. The company achieved an EPS of $2.27, with a net margin of 11.5% and a return on equity of 27.9%. Its next earnings report is expected on June 23, 2026.
Earnings drift grade
Outlook vs expectations on the last report — not price action.
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Forward outlook
5 target cuts vs 1 raises.
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EPS & revenue
EPS beat estimates by 7.3%. Revenue missed estimates by 0.5%.
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Profit surprise
EBITDA met by 1 percent. Operating income beat by 3 percent.
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Pre-earnings setup
Bar was high, analysts already very bullish.
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Analyst signal
1 upgrade, 1 target raise, 5 target cuts.
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Earnings quality
Gross margin up 0.9 points. Positive free cash flow.
Earnings Call Summary
Carnival posted strong first quarter results with record revenue, yields, and customer deposits near $8 billion. Net income jumped 55 percent year over year to $275 million. Demand remained robust with close-in bookings up 10 percent year over year and nearly 85 percent of 2026 sailings already booked at high prices. Management credited strong execution and higher onboard spending. However, geopolitical tensions and fuel price spikes created a $500 million headwind to full year guidance, which management offset with operational improvements of $150 million.
Guidance Carnival raised 2026 earnings guidance to $2.21 per share, up from prior December view, despite a $500 million fuel headwind. Management expects modest 2.75 percent yield growth and 3.1 percent cruise cost growth for the full year. They introduced PROPEL targets for 2029: greater than 16 percent return on invested capital, more than 50 percent earnings per share growth from 2025, and over 40 percent of operating cash returned to shareholders, roughly $14 billion.
Clearly negative report. The company missed important expectations and likely triggers downward revisions.
Dividend
Carnival Corporation pays an annual dividend rate of $0.30, yielding 0.97%. The dividend payout ratio stands at 6.61%.
Insider Buying and Selling at Carnival Corporation Ltd.
In recent insider activity, Bettina Alejandra Deynes, Chief Human Resources Officer, sold 43,058 shares on May 28, 2026, at an average price of $28.10. Several other insiders, including Katie Lahey, Nelda Connors, Laura Weil, Jason Glen Cahilly, and Jeffrey Gearhart, each sold 616 shares at $26.38 on May 11, 2026.
Analysts Set New Price Targets
On June 25, 2026, Wells Fargo maintained its buy rating on Carnival with a $38 price target. Susquehanna and Barclays also maintained their buy ratings, with targets of $33 and $35, respectively, on June 24, 2026. The consensus among 24 analysts is a buy rating, with an average target price of $35.05.
About Carnival Corporation
Carnival Corporation Ltd. is a major player in the leisure travel industry, offering cruise services across North America, Australia, Europe, and other regions. Headquartered in Miami, Florida, and led by CEO Joshua Ian Weinstein, the company operates through multiple segments including North America Cruise Operations and Europe Cruise Operations. Carnival's brands include AIDA Cruises, Carnival Cruise Line, Costa Cruises, and several others. With approximately 160,000 employees, the company provides a range of services from cruises to hotels and tour operations.
Bottom Line
Wells Fargo's reaffirmation of a buy rating with a $38 target emphasizes confidence in Carnival Corporation's potential. Investors keep an eye on such ratings as they provide insights into the company's growth prospects. Remember, these analyst ratings are based on past performance and expectations, not a guarantee of future results.
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