It's been 30 years since Carnival (NYSE: CCL) (NYSE: CUK) shares traded for $6 apiece, but at least one Wall Street pro feels that it's a feasible price target for the world's largest cruise line operator. Three analysts lowered their near-term price goals on Carnival stock to between $8 and $22 on Monday, following a disappointing financial update late last week. The limbo stick moved even lower when Jamie Rollo at Morgan Stanley stepped up on Tuesday.
Rollo is adjusting his price target from $7 to $6. His pulse on booking agents shows that customer demand for taking a cruise vacation has improved from where it was a few months ago, but his survey's outlook for the industry is still mixed. He's lowering his bottom-line forecasts by as much as 21% after Carnival's poorly received quarterly report on Friday. A dangerous combination of weak cruise pricing and costs climbing faster than expected is going to be problematic at both ends of the income statement. He naturally has a bearish underweight rating on the stock.
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Source Fool.com