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Click here to find out more » kynny/iStock via Getty Images Investment Thesis In the first half of 2024, the broader travel industry continued its post-pandemic recovery from 2023, and many companies performed well in the market as countries slowly opened their borders. That being said, Carnival Corporation ( NYSE: CCL ) is uniquely positioned in the market due to its continued resilience and relative discount compared to its competitors. Despite a 130% increase in share price last year, Carnival stock remains far below pre-pandemic levels, and Wall Street seems to think that a heavy debt burden and diminished cruise demand will keep the share price down.
However, the market has missed recent announcements and developments showing that these statements will soon become obsolete. My base case valuation for CCL is $25.18 per share, showing a 30% upside potential - this is a significant opportunity for investors given the current price.
Industry Overview At its core, the cruise industry is centered on the ship and the destination, with ample room for differentiation in both. Ships can vary based on the line - mass-market cruises have the largest boats with the most amenities, while premium and luxury cruises are .