Goldman Sachs Downgrades Carnival Corporation (CCL) to Neutral

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Goldman Sachs downgraded Carnival Corporation (NYSE: CCL) from Buy to Neutral and cut their price target from $36 to $32.

The firm said with exogenous variables such as oil price spikes, cruise accidents, hardware malfunctions and geopolitical events, multiples for cruise stocks have compressed and may reflect a "new normal." The firm expects the valuation on Carnival and Royal Caribbean Cruises Ltd. (NYSE: RCL) to stay in a range that is much lower than history.

Carnival has a historic multiple of 16.0X to 20.0X. However, over the past two years it has been 13.0X to 15.0X. Royal Caribbean has a historic P/E of 13.0X-17.0X and more recently it has been in the 10.5X-12.5X range.

In addition to downgrading Carnival, Goldman cut its price target on Royal Caribbean from $31 to $30.

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 $32.26 yesterday, with a 52 week range of $28.52-$41.95.

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