Barclays on U.S. Leisure: Highlights From Cruise Field Trip - Industry Remains In Flux & Visibility Remains Low
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Price: $292.00 +1.52%
Rating Summary:
24 Buy, 14 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
24 Buy, 14 Hold, 1 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays on U.S. Leisure: Highlights From Cruise Field Trip
Analyst, Felicia R. Hendrix, met with management from Royal Caribbean (NYSE: RCL) and Carnival Corp (NYSE: CCL). Hendrix feels that price cuts may be imminent since visibility remains low and the overall industry remains in flux.
According to Hendrix, the meeting had something for the Bulls and the Bears...she said, "On the bull side of the ledger, pricing has not come down yet (if and when it does, it is not likely to be dramatic and should immediately stimulate demand); the
Concordia incident will at some point fade from consumer minds; and 2013 and
beyond should be stimulated by low supply and a resilient cruise customer."
Barclays lowers FY12/13 EPS from $2.10/2.75 to $2.00/2.65 on RCL. For CCL, FY12/13 EPS estimate get cut from $1.67/1.98 to $1.59/1.88. Also, price targets get lowered $1 to $29 and $25, respectively.
"On the bear side, pricing has not come down yet; RCL's net yield guidance might not appropriately capture the price discounting; low supply translates to low fixed cost leverage; the impact to Costa is still unknown; Costa has affected demand for the Carnival brand; fuel prices are rising."
Analyst, Felicia R. Hendrix, met with management from Royal Caribbean (NYSE: RCL) and Carnival Corp (NYSE: CCL). Hendrix feels that price cuts may be imminent since visibility remains low and the overall industry remains in flux.
According to Hendrix, the meeting had something for the Bulls and the Bears...she said, "On the bull side of the ledger, pricing has not come down yet (if and when it does, it is not likely to be dramatic and should immediately stimulate demand); the
Concordia incident will at some point fade from consumer minds; and 2013 and
beyond should be stimulated by low supply and a resilient cruise customer."
Barclays lowers FY12/13 EPS from $2.10/2.75 to $2.00/2.65 on RCL. For CCL, FY12/13 EPS estimate get cut from $1.67/1.98 to $1.59/1.88. Also, price targets get lowered $1 to $29 and $25, respectively.
"On the bear side, pricing has not come down yet; RCL's net yield guidance might not appropriately capture the price discounting; low supply translates to low fixed cost leverage; the impact to Costa is still unknown; Costa has affected demand for the Carnival brand; fuel prices are rising."
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