Despite No-Sail Orders, Carnival Has a 38% Upside, Major Analyst Says
The flurry of nautical news continues today as two analysts have given Carnival (NYSE: CCL) (NYSE: CUK) a strong upgrade, despite ongoing no-sail conditions at U.S. ports. Both Credit Suisse and Argus boosted their price targets for Carnival and upgraded its rating today, CNBC reports.
Credit Suisse's Benjamin Chaiken wrote, "The conversation is changing away from 'survival' and more toward potential earnings catalysts." He cited Carnival's recently reported 90% bookings growth, the efficiency and cost-cutting gained by sale of 19 of its ships, and other factors as the foundation of Credit Suisse's bull case. He also said, "While an exact return to cruise date is still in flux, it's looking increasingly likely that a mid/late summer restart is reasonable," The Street reports, and noted Carnival has an "opportunity to refinance" it debt, potentially boosting its performance above Credit Suisse's estimates.
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Source Fool.com
