The recent dump in Carnival Corp. has created a chance before the cruise operator reports earnings on Monday, in line with Stifel. The cruise line operator’s stock was down 13.2% this month, through Thursday’s close. “We absolutely are buyers of CCL shares heading into next week’s EPS release and concurrent disclosure of FY23 guidance,” analyst Steven Wieczynski said in a note on Tuesday. “Expectations for CCL’s initial guide are subdued at best, and we like that setup.” Stifel believes buyside expectations for 2023 earnings before interest, taxes, depreciation and amortization (EBITDA) are within the $4.2 billion range, in comparison with sellside analysts’ $4.3 billion consensus. Investors understand the present consensus estimate is “somewhat stale,” he said. Based on Carnival’s history of providing super-conservative initial guidance, Wieczynski is forecasting the cruise line’s full-year EBITDA forecast might be $4.0 billion-$4.3 billion. But he doesn’t think the guidance might be viewed negatively given what are already muted investor expectations, and the percentages that management commentary may suggest upside for the second half of the yr. “We imagine CCL and the industry on the whole are already in a well-booked position for this yr, and while there could also be a blip in demand as a result of macro concerns, we don’t think that blip might be anything concerning/material given the strong pent-up demand for vacations/travel,” he wrote. “We imagine CCL management will provide qualitative commentary just like what was echoed on their last call that indicates demand, pricing and onboard metrics all remain well above 2019 levels.” CCL 5Y mountain Carnival’s five-year performance Carnival’s stock has been volatile for the reason that start of the Covid pandemic, which shut down the cruise industry. Carnival didn’t set sail from the U.S. for greater than a yea,r and when it resumed in July 2021, it was with strict safety protocols . The stock lost about 7% in 2021 after plunging nearly 60% in 2022. Shares are up 14.4% thus far this yr. Wieczynski admits there’s room for error along with his call. “This short-term trading call seems pretty easy to us (translation: we’ll probably be dead fallacious),” he said. But long run, he also believes Carnival is a buy, based on the resilience of core consumer demand for the worldwide cruise industry’s offerings. “Based on the changes necessitated by COVID-related financial challenges, we expect CCL to emerge a leaner and more efficient entity, an end result that ought to enhance the organization’s ability to generate consistent EPS and FCF growth for years to return,” he said. His price goal of $18 implies 95% upside from Thursday’s close. — CNBC’s Michael Bloom contributed reporting.