Carnival Corporation ( CCL ) shares are trading higher Tuesday after the company announced an order for three new ships for its Carnival Cruise Line brand.

The Details:

Carnival announced an order agreement with Italian shipbuilder Fincantieri that provides for the design, engineering and construction of three liquefied natural gas (LNG)-powered ships. The ships are expected to be delivered in the summers of 2029, 2031 and 2033, respectively.

“For this next generation ship, we are focused on creating innovative guest experiences that will take Carnival Cruise Line into the future with new fun features and excitement that we know our guests will love,” said Christine Duffy, president of Carnival Cruise Line.

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Including the order announced Tuesday, there have been five new ship orders for Carnival Cruise Line announced in 2024. Earlier this year, Carnival placed newbuild orders for two Excel-class ships that will join the Carnival Cruise Line fleet in 2027 and 2028. 

The company also recently announced a series of strategic shifts to further optimize the composition of its global brand portfolio and increase guest capacity for Carnival Cruise Line, transferring a total of five vessels from sister brands to the Carnival Cruise Line fleet between 2023 and early 2025.

Truist Securities maintained a Hold rating on Carnival on Tuesday and raised its price target from $17 to $20.

CCL Stock Prediction 2024:

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Carnival have an average 1-year price target of $21.44, representing an expected upside of 11%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Carnival, while 6 analysts have bullish ratings. The street high price target from Argus Research is $25.

CCL Price Action: According to data from Benzinga Pro, Carnival shares are trading above the stock’s 50-day moving average of $16.61. The stock was up 4.48% at $19.24 at the time of publication Tuesday.

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