02:48 PM EDT, 09/25/2025 (MT Newswires) -- Carnival (CCL) has the potential to post a better-than-expected Q3 net yield and a guidance raise on solid booking trends and early contributions from the Celebration Key destination in the Bahamas, UBS said in a Wednesday research report.

The brokerage said it expects Q3 net yield growth of 3.7%, above the guidance of 3.5%. It forecast adjusted EPS of $1.32, higher than the $1.30 guide.

Carnival has the benefit of more European sourcing compared with other cruise lines, as European revenue per available room growth has continued to outperform US RevPAR. "We believe that European sourcing exposure is a big driver of CCL's yield outperformance in '25," analysts wrote.

Field checks in September indicated that booking volumes in July and August have grown "meaningfully." For Q4, UBS said it expects net yield growth of 4.8% and adjusted EPS of $0.22. For fiscal 2025, net yield growth is expected to be 5.3% on adjusted EPS of $2.02.

The brokerage said it reiterated its buy rating on the stock and a price target of $33 per share.

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