JPMorgan Assumes Carnival Corporation (CCL) at Neutral

(Updated - December 6, 2022 6:29 AM EST)

JPMorgan analyst Daniel Adam assumes coverage on Carnival Corporation (NYSE: CCL) with a Neutral rating and a price target of $13.00.

The analyst comments "We are Neutral-rated on CCL. While the stock has meaningfully underperformed YTD (-52% vs. RCL -23%, NCLH -22% and SPX -16%), we think the underperformance has been largely justified given Carnival’s (1) apparent discount-to-fill pricing model, (2) aging fleet, and (3) exposure to rising fuel costs, as CCL is the only major publicly-traded operator that doesn’t hedge. Despite its challenges, CCL is by far the largest, most diversified cruise line operator, and its combination of high financial leverage and industry-leading scale could eventually result in its share price outperforming in an upturn. However, for us to get more positive on the stock, we need to be convinced that short-term occupancy gains are not coming at the expense of long-term pricing. In other words, we need assurance that CCL can raise prices without sacrificing load factor. Until then, we remain sidelined."

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 $9.68 yesterday.

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