Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Carnival stock pops as Stifel sees a buying opportunity, 100% potential upside

Published 23/03/2023, 01:04 am
Updated 23/03/2023, 01:04 am
© Reuters

© Reuters

By Senad Karaahmetovic

Stifel is an “absolute” buyer of Carnival (NYSE:CCL) shares heading into next week’s EPS release, analysts told the broker’s clients today.

Carnival stock trades about 0.5% higher in today’s trading session.

“This short-term trading call seems pretty simple to us (translation: we will probably be dead wrong)...Based on the recent trading weakness in CCL shares (mostly macro related but some whispers of demand slowing), we believe expectations are subdued, which we really like here,” the analysts told clients.

They reminded investors about the company’s tendency to offer “ultraconservative initial guidance.”

”We believe buyside expectations are actually pretty rational right now (~$4.2B for 2023E EBITDA), and while CCL’s initial EBITDA midpoint might be below that level, we believe their qualitative commentary will be strong enough to show investors there should be back-half loaded potential upside in 2H23,” the analysts further noted.

Overall, Stifel believes CCL’s commentary will be positive and sees a healthy setup into next week’s earnings report. The price target of $18 per share offers a nearly 100% upside relative to yesterday’s closing price.

Stifel’s comments come after CCL was named a short-term Buy idea at Deutsche Bank yesterday.

“We are adding CCL as a catalyst call Buy. The company reports F1Q23 results pre-market on Monday March 27 and we believe the report is likely to elicit a positive reaction from the stock, based primarily on weakening sentiment heading into the print, as well as what we believe to be a low bar for CCL’s outlook for the remainder of FY23,” analysts at Deutsche Bank said.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.