Melius Sets $36 Target as Carnival Gains 20.9%, Prepares For $6.69B Q2
CCL•Melius Research raised Carnival’s price target to $36, implying a 16.7% upside from $30.85 after shares climbed 20.9% over the past month. Analysts forecast June 23 earnings of $6.69 billion revenue (+5.6% YoY) and $0.34 EPS, while PROPEL aims 50% EPS growth by 2029 with $2.5 billion buybacks.
1. Price Target Update
Melius Research raised Carnival’s price target to $36 from $30.85, indicating a potential 16.69% upside for investors based on current valuation metrics.
2. Recent Stock Momentum
Carnival shares have surged 20.92% over the past month, closing the latest session at $30.90, significantly outperforming the 2.7% sector gain and 2.14% advance in the S&P 500.
3. Q2 Earnings Forecast
Investors are focusing on the June 23 earnings release where analysts expect revenue of $6.69 billion, up from $6.33 billion a year earlier, and EPS of $0.34 versus $0.35 in Q2 last year, with a likely upside surprise.
4. PROPEL Strategy
Under the PROPEL initiative, Carnival targets at least 50% EPS growth by 2029, has reinstated dividends and authorized $2.5 billion in share buybacks to accelerate deleveraging and boost valuation multiples, though unhedged fuel costs and yield growth moderation remain risks.
