Goldman Sachs Lowers Numbers On Carnival (CCL) But Said the Stock is a "Buy" Looking Out a Year

Goldman Sachs lowered estimates and its price target on Carnival Corporation (NYSE: CCL) from $39 to $36 one week after the Costa Concordia shipwreck, but is keeping their Buy rating.

The firm expects share performance to remain "complex" over the near-term as developments unfold. However, they are keeping their Buy rating looking out over a 12-month time horizon given rising returns, free cash flow generation of $1.5bn and $2.2bn in 2012 and 2013, and industry trends of slowing supply and a focus on building same ship profits. Also, the firm would expects a raised dividend or share buyback near-term or once the Concordia issues are resolved.

The firm cut FY12 EPS estimates from $2.74 to $2.50 and FY13 from $3.16 to $2.93. The lower estimates reflects the company's decision to halt marketing, which may be the right PR move, but will likely hurt sales.

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 $31.56 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• ACCO Brands to buy European peripherals brand Trust for ~$100M revenue
• Hyatt adds first affiliated hotel in Guyana with $50M expansion plan
• Pegasystems (PEGA) Declares $0.083 Special Dividend; 0.2% Yield