UPDATE: Berenberg Starts Carnival Corporation (CCL) at Buy

(Updated - April 29, 2014 8:03 AM EDT)

Berenberg initiated coverage on Carnival Corporation (NYSE: CCL) with a Buy rating and a price target of $50.00.

Analyst Stuart Gordon said, "Analyst We are initiating on Carnival plc/Corporation with a respective £30/$50 price target implying respective 30%/34% upsides to the current price. We see a number of converging catalysts that will lead to a positive shift in the share price."

"An improving economic backdrop, combined with a renaissance in two of the major Carnival brands should result in a recovery in yields. In addition, there is a reduced risk of a significant hike in fuel costs due to technological advances, while the outlook for fuel prices generally is more sanguine than has been the case for some time. Finally, we believe that Carnival has the opportunity to further control its operating costs, with prudent cost control seeming to be a key focus of the new CEO. These catalysts leave us sitting 12% ahead of 2015E consensus on EPS," he added.

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 $38.62 yesterday.

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