UPDATE: Jefferies Downgrades Carnival, Says Shares Reflect 'Best-Case Scenario'

Despite a slight raise from $31 to $33 in the price target, Jefferies analyst Ian Rennardson downgraded Carnival CCL to Underperform from Hold. Rennardson believes that Carnival shares reflect a best-case scenario with the risks being on the downside. In contrast, Rennardson is more optimistic about Royal Caribbean RCL, citing "superior operating performance" and "an improving balance sheet". Rennardson has reiterated a Buy rating for Royal Caribbean and raised the price target to $58. At last check, shares of Carnival and Royal Caribbean are trading at $40.20 and $52.21 respectively.