Carnival Corporation (CCL) – Bear of the Day
By Zacks Investment Research
posted 0:58 07/14/11
| Stocks Reviews
 
Font Size
 
Print
 
Sent To A Friend
 
Share
 
follow
 

related articles

from this site

We are downgrading shares of Carnival Corporation (CCL) from Neutral to Underperform. Political disturbances in some geographies and the earthquake in Japan are currently acting as the major hindrance to the company's growth. Moreover, surging fuel prices and a greater exposure to a sluggish European market will be headwinds for the company.

Carnival decreased its projections for net revenue yields from the range of 2.5%-3.5% to 1.5%-2.5% for fiscal 2011 on a constant dollar basis. The company lowered its guidance due to route changes resulting from political disturbances in the Middle East and North Africa (MENA) and the earthquake in Japan.

A greater-than-expected slowdown in the European economies could also threaten the company's profitability, given its increasing exposure to Europe in terms of revenue generation and capacity expansion compared with the industry. Our six-month target price of $33.00 equates to about 13.5x our estimate for 2011.
 

 
 
0
comments
 
0 comments
 
Trade Stocks, Indices, Commodities and Forex - Plus500

add Your comment

 
 
 
 

send to a friend
 

 

Note: Your email address. and that of your recipients, will be used only in the case of transmission errors and to let the recipient who sent the article.
The information will not be used for any other purpose

The Help us prevent spamming, please enter the security code:
Reload Image
 
 

Send a message to: Zacks Investment Research
 

 

Note: Your e-mail eddress and that of your recipients, will be used only for the transmission of this content to your recipents.
The information will not be used for any other purpose.

The Help us prevent spamming, please enter the security code:
Reload Image