In a report published Wednesday, analysts at SunTrust Robinson Humphrey upgraded Carnival Corp CCL from Neutral to Buy. The price target was maintained at $53.
"As we now have observed three consecutive months of strong forward pricing, combined with the stock still modestly down from when management raised Net Revenue Yields concurrent with 1Q earnings at the end of April, we are raising our view on the stock," the analysts said.
The analysts believe that in the leisure and lodging sector, Carnival Corp has the most room to grow to its peak net yield levels seen in 2008. The company appears to be progressing towards meeting the peak levels.
According to SunTrust Robinson Humphrey, "In our view, staying out of the media headlines is finally giving CCL some long needed pricing power as are middle class employment increases and higher disposable incomes from lower gas prices in cruise lines' core demographic."
In addition, having invested almost $1 billion in ship improvements over the last two years and having implemented an aggressive PR program, Carnival Corp appears well positioned to be able to cope with any potential negative event.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in