Carnival: Buy, Sell, or Hold?
One of the industries that suffered the most during the early stages of the pandemic was cruising. For months, these companies couldn't sail their ships. And that meant earnings plummeted. (NYSE: CCL) (NYSE: CUK), the world's biggest cruise ship operator, shifted from healthy profits to a loss -- and debt ballooned.
But in recent times, things have been looking up for the company. Demand has nearly returned to pre-pandemic levels. And the company is on its way back to profitability. Still, debt remains high. And today's rising interest rate environment makes variable-rate borrowings even more costly. Considering the full picture, is it time to buy, sell, or hold Carnival stock? Let's find out.
First, a little background on Carnival's situation since the first days of the pandemic. As previously mentioned, the company halted cruising operations in the earlier stages of the health crisis, and as a result, earnings plummeted. The company took on more debt to keep itself going until the situation improved.
Source Fool.com
Carnival plc Stock
The community is currently still undecided about Carnival plc with 1 Buy predictions and 0 Sell predictions.
On the other hand, the target price of 13 € is below the current price of 13.38 € for Carnival plc, so the potential is actually -2.8%.
