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 (NYSE: 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 (NYSE: 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.
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