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Carnival Corp Shs Paired with 1 sh of beneficial interest from P&O Princess - Stock Quote CCL

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Morningstar's Carnival Corp Shs Paired with 1 sh of beneficial interest from P&O Princess Stock Analysis

Valuation
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Is it the right time to buy or sell?
Is it the right time to buy or sell?

1-Star Price

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5-Star Price

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Economic Moat

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Capital Allocation

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Appetite for Travel Supports Strong Outlook at Carnival; Shares Attractive

Jaime M. Katz, CFA Senior Equity Analyst

Analyst Note

| Jaime M. Katz, CFA |

We don’t plan any material change to our $25 (GBX 1,890) fair value estimate for no-moat Carnival after incorporating second-quarter results into our model and view shares as undervalued even after a roughly 10% post-print pop. While quarterly revenue of $2.4 billion and an EPS loss of $1.61 were a bit lower than our projections, the firm’s outlook for the remainder of the year remained positive (on trend with our outlook). Sales were split about equally between ticket and onboard, with bundled packaging remaining popular, indicating the willingness to partake in offerings while sailing. On the cost side, fuel spend weighed on expenses, up nearly 30% over the same period in 2019, while service costs on its $35 billion in debt continue to run at $1.6 billion annually.

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Carnival Corp Shs Paired with 1 sh of beneficial interest from P&O Princess's Company Profile

Business Description

Carnival is the largest global cruise company, with 91 ships in its fleet at the end of fiscal 2021, with all of its capacity set to be redeployed by summer 2022. Its portfolio of brands includes Carnival Cruise Lines, Holland America, Princess Cruises, and Seabourn in North America; P&O Cruises and Cunard Line in the United Kingdom; Aida in Germany; Costa Cruises in Southern Europe; and P&O Cruises in Australia. Carnival also owns Holland America Princess Alaska Tours in Alaska and the Canadian Yukon. Carnival's brands attracted about 13 million guests in 2019, prior to COVID-19.

Contact
3655 N.W. 87th Avenue
Miami, FL, 33178-2428
T +1 305 599-2600
Sector Consumer Cyclical
Industry Travel Services
Most Recent Earnings Feb 28, 2022
Fiscal Year End Nov 30, 2022
Stock Type
Employees 40,000

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