Nomura Securities Maintains a 'Buy' on Carnival (CCL); Q&A on the Concordia from Industry Experts

Nomura Securities maintains a 'Buy' on Carnival Corporation (NYSE: CCL) price target of $36.00.

Analyst, Harry Curtis, said, "CCL has extensive safety procedures, however, one man’s lack of judgment can supersede multiple layers of safety procedures. Regarding a fuel spill, Concordia’s fuel sits in sealed tanks and our expert believes 95-98% of the fuel can be removed safely. Consultants we spoke with believe that Concordia will be patched, filled with air, and towed away for dismantling. CCL is insured against human error, which our experts believe was the cause, not willful malfeasance. It is unclear if CCL is exposed to punitive damages. We believe the $3.5bn market cap loss is an over-reaction. Events like these tend to be good entry points. After 9/11 consumers were also scared to cruise, but as prices declined, demand returned and shares rose 67% over six months. We estimate CCL’s normalized EPS in 2013 at ~$3 and FCF of $2.50/share."

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 $30.55 yesterday.

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