UPDATE: Deutsche Bank Lowers PT on Carnival Corporation on Revised 2013 EPS Guidance
In a report published Monday, Deutsche Bank analyst Richard Carter reiterated a Buy rating on Carnival Corporation (NYSE: CCL), but lowered the price target from $47.00 to $42.00.
In the report, Carter noted, “Carnival's 2013 EPS guidance has been revised down by 15% or 35c to reflect the loss of Carnival Triumph earnings, a 150bps reduction in net yield growth and $42m of incremental vessel enhancements for the remainder of the fleet. However, Carnival accepts that they are now assuming limited ticket price and on-board spend improvements, which in our view is conservative and appears to be a clearing of the decks. Overall while sentiment will be impacted near term given the earnings downgrade and Carnival Lines brand impact, we think the valuation of 13x FY14E earnings is supportive and long term industry fundamentals remain strong. Buy.”
Carnival Corporation closed on Friday at $34.98.
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