Winter is not the right time for a cruise, but many are snapping up shares in cruise operators carnival (CCL 2.57%) (CUK 3.13%). As of early Friday morning, the more popular of the company’s two publicly traded stocks was up nearly 14% for the week so far, according to data compiled by S&P Global Market Intelligence. Good recent news and an increase in analysts’ price target helped keep the stock on the upswing.
Full steam ahead for Cunard
A general increase in travel, even in the typically quieter months following the crucial summer period, is a trend that is benefiting many companies in the industry. In many ways, technology has made traveling easier than ever, and with an economy still humming along, people have the financial means to vacation.
Cruise season is over, but upcoming cruises could be very busy due to Carnival. On Friday afternoon, the company announced that its high-end Cunard line received its highest number of bookings ever during the final Black Friday stretch. Undoubtedly triumphant, Carnival said it would see “strong booking momentum” for cruises both next year and in 2025.
Admittedly, Cunard only has three ships, but the public’s appetite for cruising on them is an encouraging sign of strong overall demand for sea travel.
One analyst raised his Carnival price target
One person who almost certainly took this into account was Citigroup Analyst James Hardman. On Monday, before the market opened, he raised his price target on Carnival stock to $19 per share from $18 previously. He stuck to his buy recommendation.
That’s not a huge increase, of course, but it adds to the bullish momentum that’s been driving Carnival stock higher recently.
Citigroup is an advertising partner of The Ascent, a Motley Fool company. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Carnival Corp. The Motley Fool has a disclosure policy.