Nomura Securities Maintains a 'Buy' on Carnival (CCL); Avoidable Tragedy; Lowering Outlook & PT

Nomura Securities maintains a 'Buy' on Carnival Corporation (NYSE: CCL) price target lowered to $36 from $39.

Nomura analyst, Harry Curtis, said, "On January 13th the Costa Concordia ran aground and partially sunk in shallow water a few hundred meters from the island of Giglio, off the Tuscan Coast of Italy. The shipwreck has so far claimed five lives, and 15 people remain unaccounted for. We are revising our 2012/2013 EPS expectations to reflect lower yields in Europe and higher SG&A costs which are likely to result. Our 2012 EPS estimate declines to $2.36 from $2.59 owing to lower capacity (-$0.07), yields (-$0.16), and higher SG&A (-$0.01) and a small benefit from an increased share repo (+$0.01). Our 2013 estimate falls to $3.06 from $3.17, which now assumes that CCL spends ~$300m in insurance proceeds to repurchase stock. While we don’t expect a long-term impact, our target declines to $36 because of lower near-term EPS power."

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 $34.28 yesterday.

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