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Carnival (CCL) shares have been rather muted since the start of this year, but Stifel’s senior analyst Steven Wieczynski believes the second half of 2026 will be a different story altogether.
Wieczynski maintained his “Buy” rating on CCL this morning and raised the price target to $36, indicating potential upside of nearly 24% from current levels.
At the time of writing, Carnival stock is down roughly 15% versus its high in early February.
Downside Risk Already Baked Into Carnival Stock
Steven Wieczynski believes Carnival will post better-than-expected Q2 yield and management will raise its outlook for the full year as the company reports earnings on June 23.
He recommends buying CCL shares at current levels given the booking patterns remain “healthy” and passengers continue to spend freely once they step foot on the ships.
In his research note, the Stifel analyst pushed back against concerns that Carnival will cut its full-year guidance due to localized issues like softer Europe-to-Europe cruise demand.
According to him, management had already baked those soft spots into its initial 2026 forecasts. Note that CCL currently pays a healthy 2.1% dividend yield as well.
CCL Shares to Rally After Q2 Earnings
Stifel remains bullish on Carnival shares because it believes the market is “underappreciating” the company’s long-term PROPEL strategic plan.
That program targets a return on invested capital of more than 16% and substantial cash returns to shareholders by 2029.
Investors should also note that Carnival is currently trading at a price-sales (P/S) ratio of about 1.2x, which makes it significantly more attractive than peer Royal Caribbean (RCL) at more than 4x.
All in all, Stifel expects CCL to rally after the earnings event as a guidance raise soothes investor anxiety about cruise demand heading for the back half of 2026.
Carnival Remains a ‘Buy’ Among Wall Street Firms
Other Wall Street firms also agree with Stifel’s constructive stance on Carnival for the next 12 months.
According to Barchart, the consensus rating on CCL stock sits at “Strong Buy” currently, with the mean price target of nearly $35 signaling potential for a more than 20% rally from here.
