Major Banks Slash Carnival Price Targets on $90 Crude and Weak Bookings
Major banks have cut Carnival's price targets after Brent crude topped $90 per barrel, raising fuel cost projections and offsetting recent rally hopes. Bank of America, Morgan Stanley, UBS and Wells Fargo have revised down 2026 earnings estimates, citing higher fuel expenses and weaker European bookings.
1. Analyst Price Target Cuts
Following an initial rally on ceasefire optimism, major banks including Bank of America, Morgan Stanley, UBS and Wells Fargo have cut Carnival's price targets and 2026 earnings estimates.
2. Rising Fuel Costs Pressure Margins
Brent crude trading above $90 per barrel has led analysts to increase projected fuel expenses, weighing on net yield assumptions for the cruise operator.
3. Softer European Bookings Impact Yields
Weak bookings across European itineraries have prompted forecasts of reduced net yields and lower revenue expectations for 2026.