There’s even more upside for Carnival from here, Jefferies said. Analyst David Katz upgraded Carnival to buy from hold, saying Friday the cruise line operator is benefiting from a number of changes that improves its outlook. “The leadership change and the supply and demand recovery, and the resulting capital pivot, drive a significant shift from debt to equity value within the EV and should position the shares as more broadly investable, which could progress over several years,” Katz wrote. CCL 1D mountain Carnival shares 1-day “Despite the strong YTD performance, we believe the journey from a good trade to long-term investment case remains ahead,” Katz wrote. Carnival shares more than doubled this year amid a broader rally for cruise line stocks. These travel names were crushed during the pandemic and are among the last beneficiaries of the reopening theme . The analyst’s $25 price target, hiked from $9, is 45% higher than where shares closed on Thursday. Carnival shares rose 2% in the premarket. The analyst’s bullish case centers around Carnival’s new leadership, which is creating a “flatter, more efficient reporting structure, which leaves direct reporting relationships for 93% of the company’s total brand capacity to him.” The firm’s leadership is also ramping up sales and marketing efforts to drive demand. “[As] the leverage is further reduced, we believe the investor TAM continues to expand, which should further increase valuation over time,” the analyst wrote. —CNBC’s Michael Bloom contributed to this report.