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CCL

Carnival

$16.15 /

+1.57 (+10.77%)

04:59
07/13/20
07/13
04:59
07/13/20
04:59

Stifel says COVID could be positive for Carnival, sees 50% share upside

Stifel analyst Steven Wieczynski lowered the firm's price target on Carnival to $24 from $30 and keeps a Buy rating on the shares. The new price target still represents 50% upside in the shares. The COVID-19 outbreak could prove to be a net long-term positive for Carnival, Wieczynski tells investors in a research note. "No, we aren't crazy or suffering from some sort of home lockdown psychological disorder, so hear us out," says the analyst in a research note. Wieczynski believes that although COVID-19 "will undoubtedly" negatively impact cruise industry demand well into fiscal 2021, it has the potential to "accelerate the rate of change in several areas" that have long served as overhangs on Carnival shares, namely its "inefficient" cost structure, older hardware and "daunting" near-term capacity growth outlook. As a result, the analyst expects Carnival to emerge from the COVID-19 crisis as a "leaner and more efficient company." When combined with the "resilience of global cruise industry demand," Wieczynski has "conviction in recommending new ownership of the shares at current levels."

  • 02

    Apr

CCL Carnival
$16.15 /

+1.57 (+10.77%)

07/09/20 Wells Fargo
Carnival price target raised to $12 from $5 at Wells Fargo
06/23/20 Deutsche Bank
Carnival price target raised to $13 from $11 at Deutsche Bank
06/22/20 Redburn
Cruise Lines cut to Neutral at Redburn on signs of weaker demand recovery
06/22/20 Redburn
Carnival downgraded to Neutral from Buy at Redburn

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