Carnival hit by rising oil costs as BofA cuts price target

Carnival Corp ( NYSE:CCL ) View Price & Profile Carnival hit by rising oil costs as BofA cuts price target Published: 13:52 24 Sep 2026 EDT Carnival Corp (NYSE:CCL) shares have fallen 27% since August as surging oil prices raise concerns about fuel costs, prompting Bank of America to cut its price target on the cruise operator to $38 from $42 while maintaining a ‘buy’ rating.

The broker said Carnival, as the only unhedged major cruise line, remains uniquely exposed to higher fuel prices, a dynamic expected to hurt fourth-quarter earnings more than the upcoming third-quarter results, due on September 29.

The bank cut its fourth-quarter earnings per share estimate to $0.20 from $0.27, and its 2027 estimate to $2.50 from $2.68, citing a 34% rise in Brent since Carnival's second-quarter results and a 14% increase this month alone.

The broker's third-quarter earnings per share estimate remains at $1.35, in line with company guidance.

BofA said recent data points had been stable to positive, supported by improving cruise spending and steady demand commentary from companies at its recent conference.

Aggregated BofA credit and debit card spending on cruise lines accelerated to growth in the mid-teens in July and August, up from high-single-digit growth in May and June.

The broker expects third-quarter net yields, a measure of revenue per available cabin, to rise 1.4%, slightly above company guidance of 1.2%.

The analyst said it would like to see Carnival remain active in share buybacks given recent weakness in the stock.

Carnival repurchased more than 17 million shares for $450 million in the second quarter and early third quarter under a $2.5 billion authorization approved in March, leaving $2 billion remaining.

Carnival shares are trading around 15% below the average price at which the company bought back st...