UBS Maintains a 'Buy' on Carnival (CCL); Costa Concordia Impact

UBS maintains a 'Buy' on Carnival Corporation (NYSE: CCL) price target lowered $1 to $38.

UBS analyst says, "Concordia’s ~3,000 passenger capacity means it is ~1.5% of CCL’s total company capacity. We estimate that removal of ship from CCL fleet could represent $0.09 of lower EPS annually or 3-5% of earnings ($0.08 impact to 2012 EPS, as accident occurred with ~90% of the fiscal year remaining) including loss of revenues less ship operating costs."

"Forward Bookings Impact: We look at EPS sensitivities across a range of potential outcomes - including potential Costa yield impact on CCL EPS, potential Euro-sourcing yield impact on CCL EPS, and potential fleetwide yield impact on CCL EPS. We remind investors that every 1% YOY change in net yields is a $0.17 impact to CCL’s 2012 EPS and every 1% YOY change in Royal Caribbean (Nasdaq: RCL) net yields is a $0.27 impact to RCL’s 2012 EPS." (UBS cuts FY12 EPS estimate from $2.75 to $2.58)

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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