Stifel Cautious On Carnival Ahead Of Q4 Print

Steven Wieczynski of Stifel maintains a cautious view on

ahead of its fourth-quarter print. “Our apprehension does not extend from concern over the potential for reported results to differ materially from current consensus expectations, rather we are not certain the upper bound of management's fiscal 2015 net yield guidance range will materially exceed the current +3.5 percent consensus estimate,” Wieczynski wrote in a note on Friday. Wieczynski adds that the company's earnings per share should receive a boost from lower fuel costs and the potential for softer-than-expected yield guidance could compel some investors to secure near-term profits. By doing so, this may “modestly pressure” shares, however the analyst does not think that owning shares of Carnival is a “multiple year trade, not one heavily dictated by quarter to quarter results.” Wieczynski encourages investors to consider any trading weakness around the quarterly results as a buying opportunity. Shares are Buy rated with a $52 price target.