UPDATE: Bank of America Reiterates Buy Rating, Raises PT on Carnival Corporation as Momentum Has Turned Positive

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

, and raised the price target from $49.00 to $53.00. In the report, Bank of America noted, “We believe; 1) 4Q14 guidance is prudent with potential for a beat based on yield, as we saw in 3Q14; 2) FY15 initial cost guidance of +3% is prudent (we assume +2%); 3) Carnival is potentially at the start of a multi-year change story which we expect to drive better yield management and cost efficiency deriving a doubling in EPS and ROIC; 4) bunker fuel has declined c.20% since 3Q14 and, if Brent stays at $70, we see potential for a further 10-15% Bunker reduction.” Carnival Corporation closed on Thursday at $43.03.