UPDATE: Citigroup Lowers PT on Carnival Corporation Following 3Q13 Results

In a report published Wednesday, Citigroup analyst Gregory R. Badishkanian reiterated a Buy rating on Carnival Corporation CCL, but lowered the price target from $40.00 to $39.00. In the report, Citigroup noted, “3Q EPS was $1.38 (excluding 18c of impairment/unrealized gains on fuel derivatives) vs. FC of $1.30 and guidance of $1.25-$1.33, driven by lower-than-expected costs partly due to the timing of ad expenses. 3Q net yield was -3.8% (constant FX) vs. FC of -4.1% and guidance of -3.5% to -4.5% (constant FX). Net yield guidance in '13 was lowered to the bottom of their previous range and weakness is likely to continue into '14. This was inline with our expectations and our recent checks indicate an improvement in booking trends in the last month, which was supported by company commentary on the call.” Carnival Corporation closed on Tuesday at $34.54.