Jim Cramer Favors Royal Caribbean Over Carnival Amidst Improved Cruise Industry Trends.

Jim Cramer recommends Carnival Corporation (CCL) as a good stock, but notes that Royal Caribbean Cruises is his top pick. Cramer acknowledges that he owns best-of-breed stocks, but believes Carnival is not as strong as Royal Caribbean. Citi analyst James Hardiman recently increased CCL's price target from $25 to $28 and maintained a Buy rating, citing improved web traffic and pricing analysis. CCL ranks 5th on Cramer's list of stocks to consider.

Carnival Corporation (CCL) has been a subject of interest among analysts and investors alike, with recent developments indicating a positive outlook for the stock. Jim Cramer, a well-known financial analyst, has mentioned CCL as a good stock to consider, although he prefers Royal Caribbean Cruises as his top pick. Cramer acknowledges owning best-of-breed stocks but believes that Carnival is not as strong as Royal Caribbean.

Analysts have been optimistic about CCL's prospects. Citi analyst James Hardiman recently increased CCL's price target from $25 to $28, maintaining a Buy rating. This adjustment comes after recent analyses indicated a positive trend in the cruise sector, especially in terms of online activity and pricing from April to May. Hardiman highlighted that the pricing data's steadiness implies that cruise operators like Carnival are exercising pricing discipline, as most of their capacity is already booked through 2025 [1].

Based on the one-year price targets offered by 22 analysts, the average target price for Carnival Corp (CCL) is $27.75, with a high estimate of $34.00 and a low estimate of $21.00. The average target implies an upside of 16.46% from the current price of $23.83. The consensus recommendation from 28 brokerage firms is currently 1.9, indicating an "Outperform" status [1].

Carnival Corp (CCL) has reported strong financial results. In the first quarter of 2025, the company achieved a robust 7.3% yield increase, surpassing yield guidance and building on last year's 17% improvement. The company also reported a near doubling of operating income for the quarter, with EBITDA reaching $1.2 billion, marking a 40% year-over-year increase [1].

Despite the positive trends, analysts and investors should be aware of potential risks. Carnival Corp (CCL) acknowledges heightened macroeconomic and geopolitical volatility, which could impact future results. The company faces increased dry-dock costs due to unplanned dry docks, which have affected cruise costs without fuel per ALBD. Additionally, the company has a significant amount of debt, ending the quarter with $27 billion in total debt, although efforts are being made to reduce this [1].

Carnival Corp (CCL) is currently trading at $24.02, moving +0.8% from the previous trading session. The stock has appreciated by 21.03% over the course of the past month, outperforming the Consumer Discretionary sector's gain of 6.96% and the S&P 500's gain of 5.17%. Analysts and investors alike will be keeping a close eye on the company's upcoming earnings disclosure [2].

References:
[1] https://www.gurufocus.com/news/2910119/carnival-ccl-price-target-increased-as-cruise-industry-shows-recovery-ccl-stock-news
[2] https://finance.yahoo.com/news/why-market-dipped-carnival-ccl-214515068.html