Nomura Securities Maintains a 'Buy' on Carnival (CCL); 4Q Review, Raising Estimates

Nomura Securities maintains a 'Buy' on Carnival Corporation (NYSE: CCL) price target of $39.00.

Nomura analyst, Harry C. Curtis, said, "We continue to expect 2012 constant-dollar yield to be up about 2%. However, as we wrote last week, the weaker euro and sterling should wipe out current dollar yields. While the constant dollar pricing picture remains positive, 1H12 pricing and booking trends, while still positive, have weakened since the end of 3Q. However, CCL issued realistic guidance on costs per ALBD, which provides upside to our estimates. We are increasing our 2012 EPS estimate to $2.59 from $2.56 to reflect a lower cruise costs outlook (-2.2%). CCL trades at 11.7x our 2H12/1H13 EPS estimate of $2.79, 405bp below its long-term average P/E multiple of 15.75x and a 230bp discount to its sluggish economy multiple of 14x (which is our target multiple)."

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 $32.75 yesterday.

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