Carnival Corporation & plc (CCL) Stock Upgrade Highlights Resilience Amid Geopolitical Volatility

Carnival Corporation & plc (NYSE:CCL) is one of the best cheapest stocks to buy on Robinhood. On March 19, Morgan Stanley analyst Jamie Rollo upgraded Carnival Corporation & plc (NYSE:CCL) from Equal Weight to Overweight, and lowered the price target to $31 from $33. Rollo argued that the stock’s sharp selloff had created a compelling buying opportunity.

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According to the analyst, Carnival’s share price has fallen 28% from its year-to-date peak, which was influenced by the escalation of the U.S.-Iran conflict. The conflict sent oil prices surging and rattled investor confidence in travel stocks broadly, said Rollo. He noted that the decline is comparable in magnitude to the selloffs in cruise stocks during the 2003 Iraq War, the 2010 Arab Spring, and the 2022 Russia-Ukraine War. Rollo’s core argument is that the selloff has gone further than the fundamentals justify.

That said, Morgan Stanley revised its estimates lower alongside the rating change. The firm cut its fiscal 2026 net revenue yield growth assumption by 100 basis points to 2.0%. This is below Carnival’s own guidance of 2.5%. The firm cited expectations of softer European demand as the war’s ripple effects dampen travel appetite.

On earnings, Morgan Stanley trimmed its FY2026 EPS estimate by 14% to $2.27, compared with company guidance of $2.48. The bank also reduced its FY2027 EPS estimate by 6% to $2.62, and pegged the new price target at an average of 12x P/E and 8.4x EV/EBITDA on FY2027 estimates.

Carnival Corporation & plc (NYSE:CCL) operates cruise lines under brands such as Carnival Cruise Line, Princess Cruises, and Holland America Line. It offers leisure travel and vacation services across global destinations. Its products include cruise packages, onboard entertainment, dining, and tourism experiences.

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