Carnival Q3 Revenue Rises 5.5% as TTM Free Cash Flow Hits $3.18B; CCL Seen 14% Undervalued

Carnival Corp. (CCL) reported Q3 revenue up 5.5% year-over-year and net income up 3.67%, lifting the stock 16% since Sept. 22 as investors weigh its free cash flow generation. Trailing 12-month free cash flow reached $3.176 billion, or 11.51% of revenue, despite higher capital spending. Applying that 11.5% margin to analyst revenue forecasts of $28.60 billion for the year ending November 2027 implies roughly $3.29 billion in FCF. At a 12x FCF multiple, that suggests a market value of $39.5 billion, about 14% above the current $34.6 billion market cap and a price target near $29.37 per share. CCL closed at $25.76 on Oct. 2, up from a Sept. 18 low of $21.84. Analyst consensus price targets average $33.93, implying over 31% upside.