Carnival's analyst fair value estimate has been revised down from US$37.70 to US$35.60, a decline of about 5.6%, as analysts weigh better cost execution and fuel savings against softer yield guidance and patchy European demand. Forecast revenue growth was adjusted from 4.19% to 3.76%, while the projected net profit margin was revised from 14.59% to 13.13%. The assumed future P/E multiple was updated from 16.9x to 18.5x, and the discount rate moved from 10.37% to 10.19%. Bullish analysts, including Tigress Financial, TD Cowen, Citi, Stifel, Melius Research, Argus and Wells Fargo, have raised price targets, citing an increasingly fuel-efficient fleet and strong cruise demand. Bearish voices such as Bernstein, Wells Fargo and Barclays point to weaker booking trends in Europe and the Mediterranean, with geopolitical issues in the Middle East weighing on pricing and yields.
Carnival CorporationAnalyst fair value estimate cut from $37.70 to $35.60 due to softer yield guidance and patchy European demand.