Deutsche Bank Starts Carnival Corporation (CCL) at Hold

September 29, 2016 6:57 AM EDT
Get Alerts CCL Hot Sheet
Price: $53.09 -0.39%

Rating Summary:
    13 Buy, 14 Hold, 2 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 13
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Deutsche Bank initiated coverage on Carnival Corporation (NYSE: CCL) with a Hold rating and a price target of $48. Analyst Chris Woronka sees near-term headwinds.

"CCL has several positives going for it: highest in class dividend yield (2.9%), relatively low leverage (2.0x), a below-market (S&P 500) multiple (14.5x 2016E P/E), a meaningful share repurchase authorization in place, strong capitalization ($36bn), and a well-diversified, largest in class fleet. On those metrics, it screens well for a broad swath of global investors. That said, it also has a premium valuation vs. peers and--while outperforming the peer group YTD (-10.5% vs. -24.4% for the group overall)--it is underperforming the S&P 500 YTD (+6.2%), which potentially makes it a difficult stock to buy into yearend. With these offsets in mind, we initiate with a Hold rating and $48 PT," said the analyst.

For an analyst ratings summary and ratings history on Carnival Corporation click here. For more ratings news on Carnival Corporation click here.

Shares of Carnival Corporation closed at $48.78 yesterday.

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