Citi has revised its price target for Carnival Corporation (CCL, Financial), reducing it from $30 to $25 while maintaining a Buy rating on the stock. This adjustment comes in response to recent indiscriminate sell-offs in the leisure sector, following President Trump's "Liberation Day" tariff announcement. These tariffs have particularly impacted stocks in areas such as cruise and theme parks, which are now considered oversold.
The decision reflects Citi's broader reassessment of the leisure industry, taking into account potential direct tariff impacts and a possible slowdown in consumer spending. The firm anticipates that businesses will experience the full impact of the announced tariffs by the second half of 2025. However, it is expected that companies can mitigate these effects by 50% in fiscal 2026 through strategies like policy adjustments and exclusions, with an additional 25% reduction anticipated in fiscal 2027.
This outlook suggests that while immediate challenges are present, there are avenues for companies to adjust and reduce the long-term impact of these tariffs. Investors are being advised to consider these factors when evaluating the potential of stocks within the leisure sector.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 23 analysts, the average target price for Carnival Corp (CCL, Financial) is $28.42 with a high estimate of $34.00 and a low estimate of $14.00. The average target implies an upside of 59.01% from the current price of $17.87. More detailed estimate data can be found on the Carnival Corp (CCL) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Carnival Corp's (CCL, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Carnival Corp (CCL, Financial) in one year is $22.01, suggesting a upside of 23.17% from the current price of $17.87. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Carnival Corp (CCL) Summary page.
