Carnival (CCL) Stock: $20 Target And Buy Rating

By Amit Chowdhry ● Aug 3, 2022
  • The shares of Carnival (CCL) recently received a $20 price target from Stifel. These are the details.

The shares of Carnival (CCL) recently received a $20 price target from Stifel. And Stifel analyst Steven Wieczynski is maintaining a “Buy” rating on the shares.

Wieczynski adjusted the rating after Carnival announced a $1 billion common equity raise. And Wieczynski expects to use the proceeds from the offering for general corporate purposes and to address its 2023 debt maturities. 

Plus Wieczynski noted that assuming the equity raise gets priced around $10 per share that he estimates the raise would dilute the company by about 8.5% including the convertible shares. This equity raise would cause concern across the investment community. Plus Wieczynski believes investors will question why Carnival is doing this now when they raised $1 billion via a debt offering in May.

Going forward, Wieczynski pointed out that this equity raise is aligned with the strategy that they laid out on their last couple of business update calls to address their 2023 maturities as soon as possible, and while this fundraising is frustrating and will cause panic. But he does not believe this is any indication that the business trends are deteriorating.