BUZZ-Street View: Carnival sails steady in choppy waters with private island bet

Reuters
25 Jun
BUZZ-Street View: Carnival sails steady in choppy waters with private island bet

** Cruise operator Carnival Corp CCL.N raised its annual profit forecast on Tuesday, after second-quarter results beat estimates, driven by resilient demand from travelers

** At least seven brokerages raise PT on stock, avg median PT is $30.58 - data compiled by LSEG

PRIVATE ISLAND BOOST

** Stifel ("buy", PT: $34) says CCL's commentary on booking trends are encouraging and will ease recent fears of consumer weakness

** J.P.Morgan ("overweight", PT: $34) believes potential "halo effect" from July opening of Celebration Key private port will also build across CCL's portfolio of Caribbean islands

** Mizuho ("outperform", PT: $35) says CCL is fully committed to the private island theme, estimates one-third of its capacity touches private destinations currently

** Citigroup ("buy", PT: $30) notes perceived de-escalation in Middle East hostilities could lend itself to a more favorable vacation and fuel environment for CCL

** Barclays ("overweight", PT: $33) notes both "closer-to-home" and "drive-to over fly-to" travel trends are supporting CCL's demand

** "Clearly, CCL's value proposition is in full force," says Barclays

** Susquehanna ("positive", PT: $30) says co's move towards a spend-based system for its loyalty program will help unlock several revenue opportunities on the horizon, such as private island spending

(Reporting by Savyata Mishra in Bengaluru)

((Savyata.Mishra@thomsonreuters.com))

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