CARNIVAL

CARNIVAL weekly special report based On 1.00 Lot Calculation:

CRUISE COMPANY SECTOR:

• MARKET SIZE ($7.9 Billion): The global cruise market size was valued at USD 7.90 billion in 2022. The market is expected to expand at annual growth rate of 11.0% from 2022 to 2028.
• MARKET GROWTH POTENTIAL (TO INCREASE AT A COMPOUNDED ANNUAL GROWTH RATE OF ~11.0%): The global cruise market is expected to expand at a compound annual growth rate of 11.0% from 2022 to 2028.

CARNIVAL

• THE COMPANY: Carnival is among the world's largest cruise ship operators together with Royal Caribbean and Norwegian. The company's ships visit approximately 700 ports all over the world. Carnival provides travelers around the globe with extraordinary vacations at an exceptional value. The company’s portfolio of global cruise line brands includes Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, P&O Cruises (Australia), Costa Cruises, AIDA Cruises, P&O Cruises (UK) and Cunard. Carnival Corporation also operates Holland America Princess Alaska Tours, the leading tour company in Alaska and the Canadian Yukon.
• CARNIVAL IS THE LARGEST CRUISE SHIP OPERATOR WITH 47% MARKET SHARE: Carnival Cruise had by far the highest market share among cruise companies, at 47 percent. Second and third where Royal Caribbean Cruises LTD and Norwegian Cruise Line with 34 and 20 percent market share, respectively.

CARNIVAL (ANALYSIS AND EVENTS)

• EVENT: Q2 EARNINGS RESULTS (JUNE 26, PREMARKET): Carnival revenue for the twelve months ending February 28, 2023 was $14.98B, a 327.3% increase year-over-year. Carnival annual revenue for 2022 was $12.168B, a 537.74% increase from 2021. Carnival annual revenue for 2021 was $1.908B, a 65.9% decline from 2020.
• OCCUPANCY AND CAPACITY ON THE RISE: In last quarter, Carnival's occupancy rate reached 91%, up 37 percentage points from its 54% occupancy rate a year ago. Interestingly enough, occupancy rose amid increasing capacity -- now anticipated to surpass 2019 levels by 4.5% this year. With more staterooms to fill than last year, Carnival still packed a higher percentage of guests aboard. Although the company has retired 26 ships since 2019, it unveiled 12 new (and bigger) ships during that same time. According to CEO Josh Weinstein, Carnival's new ships are 9% more fuel efficient and 6% more operationally efficient than previous vessels.
• RECORD- BREAKING BOOKINGS: In fiscal Q1 2023, the cruise line booked its highest volumes in company history across its North American, Australian, and European segments. Carnival's North American segment set new booking records each and every week in January and February, and booking momentum carried into March and April. During the Q1 earnings call, CEO Josh Weinstein stated, "Booking volumes for our North American brands have been running in excess of record 2019 levels for the last six months, and booking lead times are now back to peak levels."

RICE ACTION:

• Carnival stock currently trades roughly 80% below its September 2017 high (5435 GBP penny): Carnival was last trading at 1090 GBP penny, and if full recovery follows recent all- time highs, the stock could see an upside of around ~400%.

• ANALYST OPINION: Bank of America upgraded the stock from neutral to buy and forecasts 1580 GBP penny, JPMorgan forecasts 1270 GBP penny.

Carnival, June 15, 2023
Current Price: 1070

Prices are expressed in GBP penny
1 British Pound=100 penny

Example of calculation based on weekly trend direction for 1.00 Lot¹

1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 10:15 (GMT) 15/06/2023
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