Key points:
- Carnival Corporation shares are down this year
- Tigress Financial sees the stock moving higher
- he firm pointed to re-accelerating industry growth
Carnival Corporation's shares closed Thursday's session lower, while in London on Friday, they continued to fall, starting the session down more than 3%, but one analyst believes the stock's US-listed shares are heading higher.
Tigress Financial analyst Ivan Feinseth stated in a research note that the cruise line company's re-accelerating cruise industry growth and post-pandemic recovery will continue to push booking and pricing trends positively.
Feinseth reiterated the firm's Buy rating and assigned the stock a $13 per share price target, representing an approximately 45% potential upside from current levels. Carnival's New York Stock Exchange-listed shares are currently trading around the $8.65 mark.
Also Read: The Best Performing Cruise Line Stocks
“Accelerating booking trends will continue to drive a major recovery in Business Performance trends that should exceed peak 2019 levels for CCL in late 2023,” the analyst stated.
Another firm that is positive on the stock is UBS. While earlier this month, UBS lowered its price target on US-listed shares of Carnival to $8 from $11, it maintained a Buy rating on the stock, telling investors it is still bullish on the cruise line sector and adjusted its price targets to account for higher expenses due to inflation.
Carnival Expands Air Lubrication Systems Program
On Thursday, Carnival announced it is set to expand the program for installation of Air Lubrication Systems to a majority of the cruise line brands in its fleet through 2027.
The company said the move will help it to generate significant savings in fuel consumption and carbon emissions by reducing hull drag by approximately 5% per ship.
The cruise line business is installing the Silverstream System ALS on five ships, including two in 2022 for the Princess Cruises and P&O Cruises brands. However, it is now preparing at least 10 more installations for existing and new ships across over half of its cruise line brands, while it expects continued expansion of the ALS program over time.
