Equities Update: Carnival, Tesco, AstraZeneca…

Carnival finally finds its sea legs

Mark Crouch, market analyst for eToro, says: “After years adrift, Carnival is finally sailing with the wind at its back. The cruise giant has upgraded its full-year profit forecast, buoyed by surging demand and passengers who are spending freely once aboard. From firmer ticket pricing to onboard indulgences, the mood on deck is buoyant and investors are taking note.

“Shares have hit their highest level since the pandemic torpedoed the industry, a symbolic turning point for a company that once looked marooned in debt and uncertainty. Carnival is showing it can command pricing power and still fill cabins, proving cruises are fashionable again.

“There’s still some chop in the waters with geopolitical risks, but the good news is Carnival is no longer bailing water. With sentiment shifting and earnings momentum building, the narrative has changed and the comeback cruise is happening, and markets are all aboard.”

Tesco: Earnings Preview

Lale Akoner, global market analyst, says: “We expect Tesco to deliver another strong earnings update, with sales and profits helped by a disciplined UK grocery market, firm consumer demand for value, and the company’s own strong execution. A key factor is that the UK grocery market remains rational, meaning competitors are avoiding destructive price wars and focusing instead on disciplined pricing and profitability. This stable backdrop allows Tesco to protect its margins while still competing effectively. At the same time, consumer behaviour is shifting, with many shoppers trading down from more expensive branded products to cheaper alternatives.

“Tesco is well placed to capture this trend through its focus on value and its broad own-brand ranges, which help retain customers who might otherwise move to discounters. Industry food inflation remains another important tailwind, feeding directly into like-for-like sales growth. Tesco is also gaining market share and demonstrating stronger execution than rivals Asda, Morrisons, and discounters, keeping profitability on track even as competition heats up.

“Asda is becoming more aggressive on pricing, but Tesco is tracking closely and retains the “firepower” to respond if needed. Crucially, the company’s strong cash generation underpins rising dividends and ongoing buybacks, which enhance total shareholder returns. Together, rational competition, earnings momentum, and robust capital returns keep Tesco well positioned for further upside.”

AstraZeneca’s US listing aims to fuel next decade of growth

Lale Akoner, global market analyst, says: “AstraZeneca is stepping onto Wall Street with a new US share listing, giving the company more visibility in the world’s largest healthcare market while keeping its London home. The move is aimed to attract a wider base of investors as Astra pursues strong growth over the next decade. By broadening its investor reach in the US, Astra is looking to secure the capital and visibility needed to fund its next wave of medicines and hit its long-term sales targets.

Importantly, this dual listing isn’t about shifting away from London but securing a truly global platform. Backed by a blockbuster cancer portfolio and a pipeline of promising new treatments, we think AstraZeneca is well positioned for steady earnings growth. With sights set on reaching $80bn in sales by 2030, the US listing strengthens its ability to deliver for both patients and shareholders.”