Citi Maintains Buy on Carnival

Citi is out with its report today on Carnival (NYSE: CCL), maintaining Buy.

In a note to clients, Citi writes, "Trading at around 12.5x and 10x earnings for CCL and RCL (NYSE: RCL) respectively, we believe both stocks are incorporating fairly negative sentiment. However, we think trends are not as bad as investors fear. In addition, we like the improving supply/demand dynamic, which should benefit the cruiselines over the next few years. As a result, we think the cruiselines offer an attractive risk/reward profile to investors."

At the time of posting, shares of CCL were trading pre-market at $35.76, down 0.69% from Wednesday's close.