Carnival: The Market Is Still Looking At The Recovery

Carnival has transitioned from recovery to growth, posting record revenue, net yields, EBITDA, and customer deposits. CCL's forward EPS growth is driven by high pricing, advanced bookings, own-destination monetization, cost control, and capital returns. At $26, CCL trades at 11.7x 2026 EPS and 8.2x EV/EBITDA, offering attractive upside but remaining exposed to debt and cyclical risks. I rate CCL a Buy, not a Strong Buy, due to the still-heavy balance sheet and sensitivity to macro and fuel cost shocks.