Citigroup Reiterates Buy Rating, $44 PT on Carnival Corporation

In a report published Wednesday, Citigroup reiterated its Buy rating and $44.00 price target on Carnival Corporation (NYSE: CCL).Citigroup noted, “We rate Carnival Buy for three primary reasons. 1) Carnival has an attractive liquidity position and balance sheet. We believe Carnival's healthy balance sheet (BBB+ rated on its senior unsecured debt by S&P) provides it with ample liquidity to navigate through the currently challenging macro environment. We estimate Carnival has more than enough sources of funds to cover its obligations for 2012 and beyond. 2) Carnival has a solid international expansion opportunity. Carnival presently has a 45% market share position in Europe and has done a nice job targeting different demographic groups by segmenting the market with its multiple brands. As we look ahead over the next three years, we estimate the majority of Carnival's new ship pipeline is skewed towards Europe, which should drive a greater mix of European sales and profitability. 3) Carnival has strong brand diversity. With more than 92 ships worldwide, spread out across 9 brands, we believe Carnival is well positioned to navigate through most environments.”Carnival Corporation closed on Monday at $37.08.