CUK - Carnival: Fears Have Likely Peaked Time To Turn Bullish (Rating Upgrade)
2024-06-03 08:30:00 ET
Summary
- Carnival Corporation stock remains below its pre-COVID highs.
- I urged investors to sell CCL in June 2023. CCL's relative underperformance against the market has justified my bearish thesis.
- Carnival's Q1 earnings release showed impressive net yields recovery and solid growth dynamics.
- I have reassessed my bearish thesis on CCL as I explain why it's less defensible now.
- I argue why CCL's thesis is increasingly bullish, even though significant risks to its debt profile must be considered. Read on.
Carnival Stock Underperformed The Market
Carnival Corporation ([[CCL]], [[CUK]], [[CUKPF]]) stock remains well below its pre-COVID 2018 highs, even though there are signs of life since CCL bottomed in late 2022. Notwithstanding improved investor sentiments as dip-buyers returned to support CCL, market pessimism is still palpable as investors reassess Carnival's structural recovery....
Carnival: Fears Have Likely Peaked, Time To Turn Bullish (Rating Upgrade)