Carnival Corporation (CCL) PT Raised to $33 at Mizuho

Mizuho analyst Ben Chaiken raised the price target on Carnival Corporation (NYSE: CCL) to $33.00 (from $32.00) while maintaining a Outperform rating.

The analyst commented: "1Q was better than expected and the remainder of year likely better than feared, with the 1Q yield beat (7.35% vs guide 4.6%) passed through to the raised FY yield guide (4.7% vs 4.2% previously).

1Q EBITDA of $1.21bn (vs guide $1.04bn) was $165m better than guidance, and was largely passed through to the updated $6.7bn guide (vs previous $6.6bn). We believe 1Q had a $15-20m FX/Fuel headwind making the beat that much better.

The market had concerns regarding $165m beat vs $100m guide raise, but it sounds like the delta is largely rounding/conservatism, 100K lower ALBD's from an asset sale (Sojourn), and higher dry-docks (unexpected maintenance). At the end of the day, it's hard to imagine a scenario where the volatile news flow did not impact bookings to some degree, but the outlook was better than feared, highlighting the strength of the business."

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