Nomura Securities Maintains a 'Buy' on Carnival Corporation (CCL); Q3 Review

Nomura Securities maintains a 'Buy' on Carnival Corporation (NYSE: CCL) price target of $40.00.

Nomura analyst, Harry Curtis, said, "CCL’s positive commentary on price and booking volume in 4Q11 and 1H2012 alleviates concerns about negative yields in 2012. We expect constant dollar net yield growth of 2.2% next year, which we believe is achievable given the amount of business already on the books at higher prices. After new ship CapEx, CCL should generate $1 billion of free cash in 2012 and $2.8 billion in 2013. Over the next two years CCL could spend $2.7 billion repurchasing shares while increasing its dividend payout ratio from ~30% to ~40%.With net cruise costs up only ~1% next year, our 2012 EPS at $2.83 and price target at $40 are unchanged."

For more ratings news on Carnival Corporation click here and for the rating history of Carnival Corporation click here.

Shares of Carnival Corporation closed at $33.88 yesterday.

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