UPDATE: Stifel Reiterates, Raises Price Target On Carnival Corporation Following F3Q14 Review

In a report published Wednesday, Stifel analyst Steven Wieczynski reiterated a Buy rating on

, and raised the price target from $49.00 to $52.00. In the report, Stifel noted, “All told, given the noise created by the one-time FY15 cost items, we believe it makes most sense for investors to examine the FY15-FY16 period in aggregate. In doing so, we suspect investors would be able to formulate a greater appreciation for the growth opportunity inherent in the CCL story and begin to side with our view, which suggests shares remain undervalued at current levels. Following our post-Q adjustments, we are now forecasting FY15E-FY16E combined EBITDA of $8.24B, up from $8.19B previously. Furthermore, our revised model implies CCL will be able to grow EPS at a 2-yr CAGR in excess of 30% over the FY14E-FY16E period, a level achieved even after taking one-time FY15 cost items into account. Accordingly, we reiterate our Buy rating and are raising our target price to $52 (+$3, 16x FY16E EPS) on the shares.” Carnival Corporation closed on Tuesday at $40.51.