Carnival Corporation & plc (NYSE:CUK) is one of the Undervalued Stocks with Biggest Upside Potential. Wall Street is bullish on Carnival Corporation & plc (NYSE:CUK) ahead of its fiscal Q4 2025 earnings release, expected to be announced on December 19.
Recently, on December 15, Goldman Sachs reiterated a Buy rating on the stock with a price target of $31. Earlier on December 12, Citi also maintained a Buy rating on the stock with a £27 price target.
Analysts at Goldman Sachs noted that the travel industry is faced with Caribbean oversupply issues in the cruise sector. However, Carnival Corporation & plc (NYSE:CUK) is expected to perform better in these challenges due to its relatively lower exposure to the Caribbean market. The firm expects the company’s fourth quarter to be largely in-line with the consensus. Goldman Sachs forecasts guidance for about 2.75% net yield growth and 3.25% cost growth. The firm cautioned regarding some volatility in Q4. However, it remains optimistic about the overall potential of the company driven by capital returns, company’s spring investors day, and portfolio diversification.
That said, management during its fiscal Q3 2025 released its fourth quarter outlook. Carnival Corporation & plc (NYSE:CUK) expects net yields to increase 4.3% compared to record 2024 levels along with adjusted net income up over 60% compared to Q4 2024.
Carnival Corporation & plc (NYSE:CUK) is a global cruise company that operates through various cruise brands and other travel-related services. The company has a fleet of more than 90 ships spanning across 9 major cruise brands.
While we acknowledge the potential of CUK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.
Disclosure: None. This article is originally published at Insider Monkey.