Wells Fargo Raises Carnival (CCL) PT to $38 on Strong 2026 Yield Guidance and EPS Beat

Carnival Corporation & plc (NYSE:CCL) is one of the best high volume stocks to buy right now. On December 22, Wells Fargo analyst Trey Bowers raised the firm’s price target on Carnival to $38 from $35 while keeping an Overweight rating on the shares. This decision was posted after the company announced its Q4 2025 earnings report. Carnival successfully addressed investor anxiety regarding 2026 yields and rising Caribbean competition by issuing strong yield growth guidance. The company’s projected EPS surpassed market expectations, which is a trend that the firm attributed largely to the benefit of declining fuel expenses.

In this Q4 report, which was announced on December 19, Carnival Corporation disclosed achieving a net income of $454 million, which was 2.5x higher than the previous year and exceeded guidance by $154 million. This capped off a historic 2025, where net income surged 60% over 2024 levels. Looking ahead to 2026, Carnival forecasts net income to exceed $3.45 billion, which is a further 12% improvement over 2025.

The company was also able to record $6.33 billion in quarterly revenues, which was a 6.60% rise year-over-year but missed Street estimates by $43.17 million. The company also earned $0.34 per share, which beat guidance by $0.09. Despite the positive trajectory, management acknowledged several headwinds for the coming year. Geopolitical uncertainties continue to cause volatility in ship deployments, and a new loyalty program for Carnival Cruise Line is expected to temporarily weigh on yields.

Carnival Corporation (NYSE:CCL) is a cruise company that provides leisure travel services in North America, Australia, Europe, and internationally. The company operates through four segments: NAA Cruise Operations, Europe Cruise Operations, Cruise Support, and Tour & Other.

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Disclosure: None. This article is originally published at Insider Monkey.