Carnival Seeing Improved Demand, But Debt Load Is Burdensome

Geoffrey Seiler
4.44K Followers

Summary

  • Carnival Corporation is expected to see a boost as occupancy recovers to pre-pandemic levels, but its balance sheet remains a concern.
  • Opportunities for growth include increasing capacity with six new ships on order and higher ticket prices and onboard revenue.
  • Risks include another Covid wave, economic downturns, fuel costs, and the company's high debt load.
The drone aerial view of Paradise Island and Nassau port, Bahamas.

yujie chen/iStock Editorial via Getty Images

Carnival (NYSE:CCL) should see a boost as occupancy recovers to pre-pandemic levels, but its balance sheet keeps me on the sidelines.

Company Profile

CCL operates a fleet of cruise vessels. It operates under the Carnival Cruise Line, Princess Cruises, Holland American Line, P&O Cruises, Seabourn, Costa

This article was written by

4.44K Followers
Former Senior Equity Analyst at $600M long-short hedge fund Raging Capital.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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