UPDATE: Deutsche Bank Lowers PT on Carnival on Industry Fundamentals, EPS Recovery Potential
In a report published Wednesday, Deutsche Bank analyst Greg Poole reiterated a Buy rating on Carnival (NYSE: CCL), but lowered the price target from $42.00 to $40.00.
In the report, Deutsche Bank noted, “Retain positive view on industry fundamentals and EPS recovery potential. While near term sentiment will be negatively impacted given this EPS downgrade follows so quickly on the previous downgrade in March, we think the group has now got ahead of the FY13E booking curve and has enough visibility on forward bookings, that this should mark an inflection point in the recent EPS downgrade cycle. We believe industry fundamentals remain robust and estimate that c.80% of FY14E EPS downgrade relating to the Carnival Cruise Lines incidents are non-recurring and therefore offers medium term EPS recovery potential. We retain our BUY.”
Carnival closed on Tuesday at $33.81.
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