Why Carnival Stock Sank Today While Royal Caribbean Sailed Happily Along
Two of the major cruise line operators on the scene, Carnival (NYSE: CCL)(NYSE: CUK) and Royal Caribbean (NYSE: RCL), had very different voyages on the stock market Thursday. Carnival didn't quite barrel into an iceberg, but investors nevertheless bailed, sinking its main class of shares by over 6%. On the other hand, Royal Caribbean enjoyed a pleasant sailing, gaining more than 1% on the day.
Carnival was hit by its fifth analyst price-target cut so far this week. This morning, before market open, UBS prognosticator Robin Farley trimmed her level by $1, to $11 per share. Farley isn't ready to run to the lifeboat yet, however, as she's maintaining her buy recommendation on the stock.
That followed another $1 price-target cut. In this case, it was by Morgan Stanley's Jamie Rollo, who now feels the stock is worth $6 per share.
Source Fool.com
