Jefferies reaffirms its 'buy' recommendation and $25 price target on Carnival ahead of a quarterly publication, believing that its 'long-term thesis, which includes improving demand and deleveraging, is intact'.

The broker says it is revising its estimates for the Anglo-American cruise operator, based both on the group's comments on the impact of the Red Sea diversion, rising fuel costs and general conservatism.

'In short, despite improving demand at high yields, we continue to believe that the cost environment is complex and that unhedged fuel adds volatility to the earnings stream', it says.

Copyright (c) 2024 CercleFinance.com. All rights reserved.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.