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Wells Fargo Initiates Carnival (CCL) Coverage with ‘Overweight’ Rating, $37 PT, Cites Attractive Cruise Sector Outlook

Carnival Corporation (NYSE:CCL) is one of the most undervalued NYSE stocks to buy right now. On November 18, Wells Fargo analyst Trey Bowers initiated coverage of Carnival with an Overweight rating and $37 price target. This decision comes as Wells Fargo considers the cruise sector to be the most attractive area within its coverage of gaming, leisure, and lodging companies. The firm anticipates a rapid improvement in ROIC for both individual cruise companies and the industry as a whole. Bowers believes that the TAM for cruises will continue to grow.

In its Q3 2025 earnings report, Carnival Corporation disclosed generating a record adjusted net income of $2 billion, surpassing its pre-pandemic benchmark by ~10%. This translated to an EPS of $1.43, beating Street expectations by $0.11. This achievement came despite a significant financial headwind from a ~600% increase in net interest expense compared to 2019.

The company delivered record revenues and yields, with yields increasing by 4.6% on a same-ship basis driven by strong close-in demand and high onboard spending. The total revenue for the quarter stood at $8.15 billion, which was modestly up 3.25% year-over-year. Furthermore, the company’s ROIC reached 13% for the trailing 12 months. Carnival also raised its full-year guidance for the third time this year, now expecting net income of ~$2.9 billion or $2.14 per share.

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.

While we acknowledge the potential of CCL to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CCL and that has 100x upside potential, check out our report about this cheapest 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.

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Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

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  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
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  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

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