UBS Maintains a 'Buy' on Carnival Corporation (CCL); Q2 Review

June 25, 2012 12:25 PM EDT Send to a Friend
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Price: $41.55 -0.12%

Rating Summary:
    10 Buy, 10 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 16 | New: 41
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UBS maintains a 'Buy' on Carnival Corporation (NYSE: CCL) price target of $40.00 (from $39.00).

Analyst, Robin M. Farley, said, "2012 net yield guidance narrowed to -3% to -4%, at the bottom half of the previous range of -2% to -4%. Given the level of promotional activity in the market, this is not surprising, and the company has stayed within the previous guidance range given. EPS guidance was raised due to fuel and FX, which were factors known before today, while the slightly lower (but still within guidance) yield was offset by greater non-fuel cost saves, so a net neutral impact outside of fuel and FX."

Farley still sees challenges in Europe and also mentions that Carnival has only repurchased a small amount of stock so far this year, but will continue to do so opportunistically ($330 million authorized buyback remaining). Farley also raises FY12 EPS estimate from $1.78 to $1.85 and FY13 from $2.50 to $2.56.

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 $33.66 yesterday.


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