UPDATE: Topeka Capital Markets Maintains Carnival at Buy with $38 PT on Long-Term Positives

Topeka Capital Markets reiterated its Buy rating and $38 price target on Carnival

as long-term positives offset muted near-term challenges. Topeka Capital Markets noted, "We are modestly increasing our F2012 EPS estimate for CCL from $1.83 to $1.85. While F3Q12 EPS, reported on September 25, exceeded our forecast by $0.12, we have trimmed our F4Q12 estimate to reflect more conservative profit margin assumptions. While we believe CCL's discount valuation belies the longer-term benefit of decelerating ship supply, we see limited near-term upside for the stock until more evidence emerges that revenue yields are likely to rebound materially in F2013." Carnival Corporation closed at $36.50 on Thursday.