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UBS Cruise Line Update - Revising Down Targets on Macro Concerns More Conservative on Outlook

September 12, 2011 3:01 PM EDT
CCL Hot Sheet
Rating Summary:
    8 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 18 | Down: 7 | New: 23
UBS Cruise Line Update - Revising Down Targets on Macro Concerns More Conservative on Outlook

UBS analyst said, "We still believe that the cruise industry will continue its recovery from its 2009 yield trough, though we do note the decline in consumer sentiment since late July. We are also moving to 2013 from 2012 as the year off of which we will base our price targets."

Carnival (NYSE: CCL) Valuation: Maintain Buy, Price Target $40 (from $44) - "We are moving our target to $40 (from $44) and apply a ~14x multiple on 2013 EPS, discounted to today, at the lower end of our 14x-16x target range for the name. Our estimates remain unchanged."

Royal Caribbean (NYSE: RCL) Valuation: Maintain Neutral, Price Target $27 (from $38) - "Our $27 target is derived from ~12x (in line with historic discount to CCL’s P/E at 10-20%) 2013 EPS, discounted to today. We have updated our 2012 and 2013 EPS estimates to $2.93 and $3.01 from $3.07 and $3.21, previously."


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