Jefferies analysts reiterated a Buy rating and $35 price target on Carnival Corp, saying the cruise operator's reduced fiscal 2026 guidance reflects near-term headwinds rather than a change in its longer-term trajectory. Carnival lowered its fiscal 2026 net yield growth forecast to 3.2% from 4.1%, now expects adjusted EBITDA of about $7.11 billion versus a prior estimate of $7.19 billion, and projects adjusted earnings per share of $2.22 compared with earlier guidance of $2.21. The firm believes a multi-year improvement story driven by margin expansion and more than $9 billion in free cash flow generation expected between fiscal 2026 and 2027 remains intact, supporting organic growth investments, debt reduction and shareholder returns. Jefferies noted that Carnival has exceeded its guidance for net yields, adjusted EBITDA and adjusted earnings per share in every quarter since the first quarter of 2025, suggesting the latest outlook could prove conservative. The brokerage modestly lowered its revenue forecasts but raised adjusted EBITDA estimates, now projecting fiscal 2026 revenue of $27.6 billion and adjusted EBITDA of $7.17 billion.
Carnival CorporationJefferies reiterates Buy rating and $35 PT, calling reduced guidance near-term and maintaining positive long-term outlook.