UPDATE: Jefferies Lowers Target to $37.50 on Carnival
Jefferies maintains its Buy rating on Carnival (NYSE: CCL) and lowers its target by $2.50 to $37.50 a share due to one-off costs related to the Costa Concordia tragedy and higher oil prices.
Jefferies comments, "We reiterate our Buy recommendations on CCL LN and CCL with slightly lower price targets of 2400p and $37.50 respectively. This follows a 25% reduction in our 2012 forecast EPS caused by a materially higher assumed fuel price (30 cents hit), the one-off costs associated with Costa Concordia (20 cents hit) and zero assumed increase in net revenue yield (20 cents hit). We also reduce our 2013 EPS forecast by 20%."
JEF closed at $30.20 a share yesterday.
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