UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Carnival Corporation on Positive Yield Inflection Ahead of Schedule

In a report published Wednesday, Bank of America analyst Nicholas Thomas reiterated a Buy rating on

, and raised the price target from $45.50 to $49.00. In the report, Bank of America noted, “Carnival is the global leader in a duopolistic industry with low market penetration rates and attractive demographics. Net yield across 2012-14E has been negatively impacted by the Costa and Carnival brand issues. 3Q14 represented the inflection point of returning to positive net yield a quarter earlier than expected. We forecast margin improving from 10% to 18% by 2018E and ROIC from 5% to 11% over the same period, in both cases a return to 2008 levels.” Carnival Corporation closed on Tuesday at $40.51.