UPDATE: Morgan Stanley Raises PT to $37 on Carnival on Yield Momentum

Morgan Stanley reiterated its Neutral rating on Carnival CCL and raised its price target from $34 to $37. Morgan Stanley commented, "F13 EPS cut 7% due to cost pressures, but PT rises to reflect good yield momentum, our expectation of a $1bn annual buyback, and a return to normalized profits by F14. We remain EW as the risk-reward looks evenly skewed. … CCL is a macro play, but better GDP growth has historically led to higher fuel costs." Carnival closed at $36.43 on Friday.