CUK - Why I Believe Carnival Can Potentially Appreciate By More Than 60%
2024-07-15 05:22:43 ET
Summary
- CCL was hit hard during the pandemic, issuing $25.0B in net debt and $2.5B in equity since.
- There was a significant shift of value from shareholders to bondholders, but that process is now on the verge of being reversed.
- Carnival's Free Cash Flow generation due to higher earnings and lower capex will lead to a better Net Debt/EBITDA ratio, with significantly lower interest expenses.
- The market is likely to take notice before this process is complete and revalue CCL's shares soon.
Carnival ( CCL ) (CUK) (CUKPF) was hit hard during the pandemic. So hard that, to this day, it continues to struggle with a significant amount of debt, having raised a net amount of $16B in 2020, $7B in 2021 and $2.5B in 2022, while also issuing around $1.2B of Equity in both years of 2021 and 2022....
Why I Believe Carnival Can Potentially Appreciate By More Than 60%