"Wieczynski's estimate cuts are driven primarily by the recent spike in global fuel prices, which have added a tangible cost headwind to the cruise industry's near-term outlook. WTI crude climbed from $57.97 per barrel in December 2025 to $64.51 per barrel in February 2026 - a meaningful move for a company that operates over 100 vessels and counts fuel as one of its largest variable costs."
"Wieczynski notes that investor sentiment across the cruise industry has 'gone from solid to unstable/concerning in the blink of an eye.' He believes the bar for Carnival's upcoming earnings release and guidance has been 'massively lowered,' which in his view creates a more favorable setup for the stock to surprise to the upside."
"Carnival is the world's largest cruise operator, with a combined fleet of over 100 vessels across 10 brands. The company delivered a strong fiscal 2025, posting full-year adjusted net income of $3.08 billion, up more than 60% year-over-year, and beating EPS estimates in all four quarters."
Stifel analyst Steven Wieczynski reduced Carnival Corporation's price target by $5 to $35 while keeping a Buy rating. The revision reflects two primary concerns: rising global fuel prices, with WTI crude climbing from $57.97 to $64.51 per barrel between December 2025 and February 2026, creating significant headwinds for a company operating over 100 vessels; and deteriorating investor sentiment across the cruise sector. However, Wieczynski maintains conviction in Carnival's underlying business strength. He notes that lowered expectations for upcoming earnings create potential for upside surprises. Carnival, the world's largest cruise operator with 10 brands, delivered strong fiscal 2025 results with adjusted net income of $3.08 billion, up 60% year-over-year, and reinstated quarterly dividends.
Read at 24/7 Wall St.
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